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COPYRIGHT DEPOSIT 



Timber Bonds 



BY 



T. S. McGrath 




Craig-Wayne company 

CHICAGO, ILL. 






Copyright, 1911 

BY 

- T. S. McGRATH 
Entered Stationers Hall, London 
All lights reserved 



& 3 % o \> 

SCLA31-9146 



TIMBER BONDS. 

BY 

T. S. McGeath. 



CONTENTS. 

CHAPTERS. 
PREFACE 7 

1. Timber Bonds 9-11 

2. Floating Debts 12-14 

3. Funded Debts 15-18 

4. The Underwriter 19-21 

5. Review of Business 22-26 

6. Audit of Books 27-30 

7. Examination of Property 31-45 

8. Contract to Deliver Bonds 46-51 

9. Legal Features 52-54 

10. The Trust Deed 55-332 

11. Style of Bonds \ 333-335 

12. Bond Circulars 336-448 

13. Sinking Fund 449-451 

14. Fire Risk 452-455 

15. Loan Value 456-458 

16. Technical Terms 459-463 

17. Words and Phrases 464-504 



PREFACE. 

This book treats the Timber Bond from a 
purely practical basis. No attempt is made 
to advance theories. When given careful con- 
sideration, the criticism of the present sinking 
fund practice and title examinations will be 
acknowledged sound by all concerned. No ef- 
fort has been spared to make the chapters short 
and the language used simple and clear. The 
circulars and mortgages quoted are given in 
full that they may be safely followed for guides 
and comparisons. 

I wish to express my thanks to Mr. Edward 
E. Barthell of Nashville, Tennessee, for the 
mortgages, to Mr. Calvin Fentress of Lyon, 
Gary & Company, Chicago, for ideas and criti- 
cims, to Mr. H. S. Sackett, U. S. Forest Service, 
for information and data, and to the Bond 
Houses for circulars and suggestions. 

T. S. McGkath. 

Chicago, July 5, 1911. 



CHAPTER L 

TIMBER BONDS. 

The underlying strength of the security be- 
hind the Timber Bond is steadily forcing it into 
great favor with bankers, institutions and in- 
dividuals. When the exact nature of the in- 
vestment is fully understood by people with 
money the market for timber bonds will become 
very broad and the six per cent bond will pass 
out of existence. Even now, timber bonds are 
being sold on a 5%% basis. These bonds are 
issues which have been created with the great- 
est care. The cruises of the timber and exam- 
inations of the physical properties have been 
made, or checked, by the private experts of the 
issuing bond house. The titles have been ex- 
amined at the county seats and abstracts veri- 
fied by the original records. All the legal proce- 
dure from the incorporation of the company 
down to the delivery of the bonds has been cer- 
tified by eminent attorneys. The books and 
accounts have been audited by experts who 
are celebrated for the thoroughness of their 
investigations and their insight into affairs. 
The work of floating these issues has been su- 
perintended from its inception, either by ex- 
perts of the negotiating bond house, or the 
underwriters referred to in chapter three of 
this book. 



10 TIMBER BONDS 

Forest fires, and the loss of timber thus 
caused, is the chief argument used against tim- 
ber bonds. The public gets its ideas of these 
fires from what has occurred in the upper Mis- 
sissippi Valley. The situation of the commer- 
cial timber at present practically removes this 
fire risk. The chapter on forest fires will clearly 
show this danger to be greatly magnified. 

There are some speculative timber bond oper- 
ators now doing business and some issues at 
present outstanding that will default. Less than 
half of one per cent of the dealers can be classed 
as speculators, or with a tendency toward rapid 
riches. Amongst no other class of bond dealers 
is the percentage of legitimate, conservative 
and careful operators so large as in the Tim- 
ber bond field. 

The serial is the only safe timber bond and 
the last maturity must fall due while there is 
ample stumpage standing to protect the prop- 
erty until the trust deed is fully satisfied and 
the Trustee released. The sinking fund clauses 
should cover this point clearly and thoroughly. 
A careful reading of the chapter on sinking 
fund will enable the student or banker to form 
safe conclusions. 

Successful practice and the daily operations 
of sound and active traders is the best guide 
for those contemplating the timber bond field 
either from the outlook of borrower, banker, 
dealer or investor. The bond circulars given in 
this book have been selected with care and will 



TIMBER BONDS 11 

furnish material for a complete survey of the 
issues of timber securities now outstanding. 
The circular form used by the same house for 
different issues is nearly always after a set 
style, but the values of stumpage, percentage 
loaned, sinking funds and other vital points 
differ in each circular. 

The legal opinions and legal procedure in 
general must be closely watched when dealing 
in timber securities. The forms of mortgage 
given in this book are the best in existence to- 
day and should be carefully studied. No in- 
vestor should purchase a timber bond before 
reading a copy of the legal opinion on the issue 
and noting if the titles have been checked at the 
county seats and the original records examined. 

Holders of timber bonds or those wishing to 
invest in such securities can have the bonds 
they own or want to purchase examined, ap- 
praised and passed on by independent experts. 
Capitalists can now take advantage of the high 
returns on timber investments, and under 
skilled guidance buy those that are sound and 
safe. 



CHAPTER H. 

FLOATING DEBTS. 

In the present generation when the stump- 
age owner, logger and millman are nearly al- 
ways the same individual, it takes much more 
capital to operate the lumber business than it 
did in the old days. The timber holdings must 
be very large to warrant the construction of 
the modern mill, and supply it with cutting ma- 
terial for a sufficient number of years. The log- 
ging equipment comprises steam railways, loco- 
motives and cars in addition to the woods 
tackle. All this gear costs heavily for every 
mile of road built and every thousand feet of 
timber taken out. The logging and milling 
crews are larger, the commissary more exten- 
sive, the pay rolls heavier, the liabilities of 
every nature more pressing. The cost of stump- 
age is tied up for a long term of years and can 
be collected only in small portions as the land 
is logged off. The money spent in the cut- 
ting of trails, building of railroads and con- 
struction of mills is a permanent investment 
that practically can never be reclaimed. The 
operator is forced to extend credit to the peo- 
ple who buy lumber from him and he carries 
them for any length of time from ten days up 
to six months. He must pay freights in cash, 

12 



FLOATING DEBTS 13 

taxes are exorbitant and inexorable, and pay 
rolls can never be postponed. 

In time the floating debts and quick assets 
get ont of all proportion and must be adjusted. 
An investigation is instituted to study each 
part and phase of the business in order to learn 
how to relieve the situation. This study com- 
mences with the timber holdings in the hope 
that some of them may be so situated as to per- 
mit being sold and turned into cash without 
hurting the logging layout or hampering the 
future operations. Instead of being in a posi- 
tion to sell stumpage, it is usually found that 
the mill is sawing up timber a little faster than 
was originally expected and not only is selling 
stumpage out of the question, but to be entirely 
easy over the big investment in the mill, log- 
ging road and equipment, more timber should 
be purchased. The investigation then moves 
on to the railroad, railway equipment and log- 
ging equipment in order to see if some of the 
locomotives can be spared, lighter rails laid, 
fewer cars used or if a saving can be effected 
in donkey engines, cable or other gear. It is 
found here that the timber is being logged 
faster than was at first planned, that locomo- 
tives and cars are working up to capacity, that 
donkey engines are crowded and that a heavier 
rail could be used much more economically than 
the light one at first put down and now doing 
service. The maintenance of road has not been 
kept up to standard and the equipment has been 



14 TIMBER BONDS 

so busy that maintenance of equipment has not 
been attempted. It is only a short time until 
the rolling stock must commence going to the 
shop for extensive repairs. No curtailment can 
be effected here. Instead an expenditure must 
be made for reserve rolling stock, more rails, 
donkey engines and tackle. The roadbed ought 
to have considerable money spent on it and 
altogether quite an outlay should be made in 
this end of the business. The examination then 
moves to the mill to see if any economies or sav- 
ings can be effected there. The mill is of the 
most modern construction, under thoroughly 
efficient management and operated with full 
care and frugality. It cannot be improved on. 
The books are then audited and a general re- 
view of the business is made to learn the best 
plan of action. The final result of all these 
searching investigations is to convince the oper- 
ator that a business where the capital is chiefly 
in the form of what might be called " funded 
assets' ' cannot be conducted on the basis of 
a business having its capital in the form of 
floating assets. 



CHAPTEE III. 

FUNDED DEBTS. 

Owing to the nature of the business, logging 
enterprises and sawmills are often located in 
places where the banking facilities are very 
limited. Small banks cannot extend accommo- 
dations of much value to a large undertaking 
like the modern logging and milling projects. 
The operators are forced to seek elsewhere for 
money credit. Short time loans from nearby 
banks are not satisfactory, as they are liable 
to be called at the most inopportune mo- 
ment. The banks in times of need must first 
care for their local customers. 

Commercial paper has not proved suitable to 
the mill man. The floating of such paper, and 
meeting the interest on and retirements of short 
time notes, forces him to operate in dull seasons 
and on losing prices. He must care for his 
floating debts no matter how large the imme- 
diate loss on the transactions. The logging 
camps and mills cannot be shut down on ac- 
count of the urgent current money require- 
ments. A bond loan prevents the necessity of 
operating at a loss. It provides all the neces- 
sary capital required to do business in the 
safest manner. It eliminates all floating debts 
and short time paper. The operator knows ex- 
actly what he must figure on in the way of in- 

15 



16 TIMBER BONDS 

teres t charges and retirements. After arrang- 
ing to meet these every six months he can run 
the business to suit himself. 

The logging and milling business is often the 
life of the community in which it exists and all 
the other enterprises in the neighborhood are 
dependent on it for success. These others are 
too small to go out of the immediate vicinity 
for loan accommodations. To do business they 
must be carried by the local bank. The tim- 
ber company has land to sell, by-products and 
fuel to dispose of. It is deeply interested in 
building up the town, and should not, for these 
reasons, use the resources of the local bank. A 
bond loan allows it to avoid borrowing from the 
local bank. 

Having a large stock of lumber in the yard 
ready for immediate shipment enables a com- 
pany very often to get a premium over the mar- 
ket price for quick delivery. It takes money to 
carry such a stock. A bond loan furnishes it 
and permits the operator to make bigger profits. 

In the discounting of bills and accounts much 
money can be saved by a large business. Ample 
working capital places the operator in a posi- 
tion to take advantage of lower cash prices and 
cash discounts. A bond loan furnishes the 
necessary funds and the saving thus effected 
goes a long way toward paying the interest on 
the bond issue. 

The company that is fully equipped with 
working capital is in a very powerful position 



FUNDED DEBTS 17 

when it comes to getting and holding trade. It 
makes little difference about the size of its tim- 
ber holdings and milling capacity when it is 
competing for orders. If it is cramped for 
funds it cannot hold its own with the company 
that has smaller assets but more ready money. 
A bond loan secured by its land and timber fur- 
nishes all necessary cash requirements. 

It would be possible to recite many more 
sound reasons showing the advantage of funded 
debts over floating liabilities, but those enumer- 
ated are sufficient to prove to the banker and 
bond dealer the wisdom of the timber operator 
who mortgages his property for the necessary 
funds to furnish the cash to handle his busi- 
ness with economy and safety. 

The lumberman has gone over the situation, 
reviewed his business thoroughly and realizes 
he must have more money. Instead of being 
able to take advantage of the numerous ways 
of making and saving, of protecting his hold- 
ings, of extending his business, and caring for 
his customers, he is constantly crowded by his 
due bills, and his affairs are at a point where 
something must be done. He decides to fund 
his debts. 

The operator carrying a large investment in 
plants and stumpage, loaded with floating debts 
and facing the necessity of further heavy cash 
expenditure for improvements, extensions and 
purchase of timber, out of which he can draw 
no immediate return, has decided to fund his 



18 TIMBER BONDS 

present liabilities, and borrow the money neces- 
sary for his needs in the form of a bond issue, 
maturing over a period of years, and secured 
by a first mortgage and prior lien, on all his 
holdings now owned or to be acquired. 

In order to negotiate this loan and get a fair 
price for his bonds, the enterprise must be well 
founded and sound. The property must be 
favorably located, the shipping facilities ample, 
the market for the product not restricted, the 
plants modern and economical producers, the 
timber of good quality, the cost of logging and 
milling not excessive, the selling department 
well organized and effective. Every branch of 
the business must be able to stand the closest 
scrutiny of the experts that the bond under- 
writer or the banker will send on the property 
to make investigations. 



CHAPTEE IV. 

THE UNDERWBITEB. 

The difference between timber bonds and in- 
dustrial bonds has not always been realized by 
those issuing timber securities. Again tim- 
ber bonds have been brought out by some houses 
in the same manner in which they would issue 
real estate or land bonds. The errors have re- 
sulted in some defaults. Such houses are re- 
sponsible for the prevailing notion that only 
the bond dealer who specializes in timber secur- 
ities can handle them with perfect safety. 

This idea hurt timber bonds and narrowed 
their market. It founded the feeling amongst 
many bankers and bond dealers that timber 
bonds were good things to avoid. These men 
did not have the time to study timber and allied 
industries and they invested their funds in 
paper they understood or could easily learn all 
about from a reliable source. 

The prejudice thus created also hurt the tim- 
ber owner and forced him to put up security out 
of proportion to the money loaned him. It 
caused him to pay heavy sinking funds and high 
interest rates, and to sell his bonds at a big 
discount. The inherent value of the timber 
bond alone saved it from being driven out of 
existence by the ignorance and greed of " Tim- 
ber Experts ' ' and other interested parties. The 

19 



20 TIMBER BONDS 

timber cruising firms knew nothing about bonds 
and they were very jealous of their knowledge 
of timber. The bond dealers and bankers found 
it next to impossible to get the real facts and 
give themselves and the timberman a fair deal. 
The result was that the timberman usually suf- 
fered through the unwillingness of the timber 
expert to advise the banker fully on the tech- 
nical questions regarding stumpage. 

The first timber bond was written about ten 
years ago and the situation explained above 
continued for several years. Then the most re- 
liable timber bond dealers commenced organiz- 
ing their own force of experts and some wealthy 
lumber operators also entered the timber bond 
business. This partially relieved the situation, 
which was further helped by the rise of a few 
very expert cruising firms who adopted the 
broad policy of fully advising the bond buyers 
on every phase of stumpage values and logging. 
These cruisers, however, are not familiar with 
commercial life, as they are professional woods- 
men. Neither do they understand the creation 
of a bond issue. Thus, the average bond house 
and banker was unable to get satisfactory ad- 
vice on timber bonds until some two years ago. 
About that time a couple of men who thor- 
oughly understand stumpage, timber values and 
the lumber business, and who are experts in 
industrial bonds, entered the field as underwrit- 
ers. Their policy is to analyze and report on 
issues through every phase of their creation, 



THE UNDERWRITER 21 

for any person who wants the information. 
Their business is underwriting whole issues for 
timbermen and placing them with banks and 
bond dealers. These men supply the long felt 
want. That buyers appreciate their services is 
attested by the fact that millions of dollars 
worth of bonds have passed through their 
hands in the short time they have been operat- 
ing. 

"When the timberman decides to float a bond 
issue on his holdings, he goes to these under- 
writers or some bond house or banker to nego- 
tiate his loan. If he places it in the hands of 
the underwriters their first move will be to 
make a close survey of the entire project before 
calling for the investigations of auditors, cruis- 
ers and attorneys. 



CHAPTER V. 

BEVIEW OF BUSINESS. 

All the expenses incident to a bond issue must 
be borne by the timberman. These expenses 
consist of an audit of the books, a cruise of the 
timber, the legal charges for examining titles, 
drawing the trust deed, drafting the text of the 
bond, the charges of the trustee, the cost of cer- 
tifying the bonds, the cost of printing the mort- 
gage, lithographing the bonds and incidental ex- 
penditures. Should the bond issue fail through 
some fault or mistake of the timberman, it 
would be very costly to him. 

Every precaution should be taken to elimi- 
nate the risk of failure before incurring the 
outlay for expensive investigations. The busi- 
ness should be reviewed to ascertain if the loan 
is feasible on the basis of the statements and 
data furnished by the timberman. This review 
should cover the financial, industrial and stump- 
age operations. The prospective borrower can 
furnish a statement of assets and liabilities 
as taken from his books. A statement showing 
the volume of operations with the disburse- 
ments and receipts incident thereto. Each de- 
partment should be shown in detail. A cruise 
of the timber, giving its kind and quality and 
if long leaf pine, stating whether it is round or 
bled, a description of the various equipment 

2$ 



REVIEW OF BUSINESS 23 

and plants. An examination of these state- 
ments will enable the analyst to judge with 
fair accuracy if the loan can be negotiated. If 
so, he should get on the ground and examine 
the property to see the kind of timber, and the 
nature of equipment used in getting it out, to 
judge the efficiency and value of the mills, to 
note the manner of accounting, and to see the 
method of handling sales. In this way he takes 
a mental photograph of the entire business and 
can tell almost exactly what the timberman can 
borrow if the information is approximately 
verified by the expert investigations to follow. 

Standing and living timber is the life of a 
timber bond. The heft of the security for the 
loan must be green and growing stumpage. A 
small proportion of over mature trees may be 
allowed. No loan should be made on timber 
consisting mainly of over-ripe trees. Down tim- 
ber should not be considered unless it is easily 
accessible. Dead timber still standing should 
be cruised. Fire killed timber should be cruised. 
The timber should be on land owned in fee 
simple. Twenty five per cent of stumpage con- 
tracts may be allowed if the life of the contracts 
or the time granted for removal of timber is 
longer than the life of the bonds. Bonds should 
not be written when secured by timber standing 
in a county where taxes on timber land are ex- 
cessive. 

The ground should be fairly good for log- 
ging. If very hilly or rough the breakage in 



24 TIMBER BONDS 

falling is liable to be excessive. It should be 
a good logging chance. The breakage must be 
deducted from the stumpage yield and the loan 
value figured on the estimated feetage less the 
estimated breakage for the entire tract. In red- 
wood and other very large timber, the breakage 
is heavy. 

In the South, where long leaf pine is bled for 
turpentine, either by boxing or cupping, care 
must be exercised in making valuations. Round 
timber is the tree before being boxed or cupped 
for working. Boxed timber is the tree that is 
now or has been boxed or cupped for working. 
The cup system is easier on the tree and more 
modern than the box. Round timber is worth 
more than boxed or bled timber and in bled 
timber the tree that is cupped is more valuable 
than the tree that is boxed. The value of bled 
timber depends entirely on the condition of the 
particular tract as shown by the detailed cruise. 

The logging equipment must be modern, in 
good condition, ample to get out timber fast 
enough to protect interest and retirements on 
the loan. The cost of logging should not be 
too far above the average for its particular 
locality. If the cost of logging is under the 
local average, it speaks highly for the enter- 
prise. 

The logging railway should be well built, 
fully equipped to handle the output and oper- 
ated with economy. The kind of locomotives 
used will depend on the grades. Where geared 



REVIEW OF BUSINESS 25 

engines are necessary the rolling stock should 
be equipped with air brakes. In fact all rolling 
stock, whether operated with geared or direct 
engines, should be fitted with air. One runaway 
would more than pay the cost of such equip- 
ment. 

The mill should be in good repair. Whether 
band or circular it must be economical of its 
kind. Bonds should not be written on mills that 
butcher timber. Such sawing shows indifferent 
and improvident management and eats into the 
security. Timber slaughtering mills are quickly 
killed off when competing plants go after their 
trade. The capacity of the mill should be suffi- 
cient to cut enough lumber to care for the in- 
terest and retirements on the loan. There 
should be ample water supply at the mill and 
sufficient hydrants and hose to handle any fire. 
The pumps should be good, the hose sound and 
easily accessible. If possible a sprinkler sys- 
tem should be used. The refuse burner should 
be covered with spark arrestor and placed as 
far from the mill as possible. 

The Sales department must be well organ- 
ized. The market is vital to the income and 
the books must show a clean record on this 
point. Also the Accounting and Collecting de- 
partments must be effective, and the business 
in good credit. The shipping facilities must 
be good. The plant must be on a railroad that 
enables the lumber to reach a ready market. 
Plants loeated on more than one road are very 



26 TIMBER BONDS 

desirable. Plants located so they can ship by 
rail and water are the choicest risks. Plants 
located on a line that suffers from chronic car 
shortage should be avoided. Plants located on 
a line that is short on motive power should be 
avoided. Each lumbering enterprise has its in- 
dividual points that must be scrutinized and 
these features will be brought out in the expert 
reports of auditors, cruisers and attorneys. 



CHAPTER VI. 

AUDIT OF BOOKS. 

Many people confuse the auditor with a book- 
keeper or office accountant. This is a great 
mistake. The expert auditor or certified public 
accountant is one of the most higlily trained 
and technical professional men of the present 
day. He is in the same rank with the consult- 
ing civil engineer and the expert investment 
analyst. He is educated deeply in his special 
work and taught to go to the very heart of con- 
ditions in the most direct and thorough man- 
ner. Nothing escapes his trained and vigilant 
scrutiny. The cruiser estimates the timber sup- 
ply and future possibilities. The auditor writes 
the history of the business. The auditor does 
not care particularly for glowing prospects ; he 
wants accomplished facts. The auditor brings 
together every branch of the business in a clear 
and concise form. He shows receipts and dis- 
bursements, earnings and outlays, profits and 
losses, assets and liabilities as they actually 
exist. 

Up to the present time investment buyers of 
timber bonds are furnished only with the bal- 
ance sheet appearing in the circulars of the 
house selling the securities. These buyers 
should be provided with an annual statement of 
the affairs of the company whose bonds they 

27 



28 TIMBER BONDS 

own. This statement should be made tip by 
responsible Public Accountants who are fa- 
miliar with lumber operations and accustomed 
to audit for bond issues. 

The mortgage protects the banker and bond 
dealer by permitting them to enter on the prop- 
erty and make investigations and audits at any 
time. This is in the nature of insurance. Ii^ 
prevents the property from being skinned and 
forbids fraudulent operations by dishonest peo- 
ple. The timber industry is composed of ex- 
ceedingly high class men and these investiga- 
tions are not often made. Comprehensive re- 
ports, made by independent experts, and fur- 
nished regularly, would increase the desire for 
timber bonds, by giving the public who now 
hesitate to buy on account of lack of knowledge 
of timber operations, confidence in them. These 
reports would tend to put timber bonds in a 
very desirable class and greatly broaden their 
market. 

Eecently I had occasion to ask a bond dealer 
for the latest balance sheet of a lumber com- 
pany for whom he had sold an issue of bonds. 
The bonds were disposed of more than two 
years ago and he has not since had their affairs 
inspected. The only information he could give 
was from the original audit. This attitude is 
wrong and dangerous. The day will soon be 
here when buyers of timber bonds will insist 
on annual reports. They are entitled to them 



AUDIT OF BOOKS 29 

and bond dealers should see that they are fur- 
nished without request. 

The particular audit on the books and ac- 
counts of an operation for the purpose of learn- 
ing if the operator is entitled to a bond loan is 
made to determine the assets, the liabilities and 
the profits. This examination will show the 
purchase price of timber land, equipment and 
mills. It will show the figure they are being 
carried for on the books at present. The audit 
will exhibit every detail of manufacturing cost, 
taxes, interest, insurance and overhead charges. 
Many operators think they are making a profit 
when in reality they are running at a loss. 
These men omit charging up the cost of stump- 
age, the interest on the investment, the taxes 
or the money they loan the business from time 
to time. When operating without a bond issue 
it may be well enough to overlook interest, but 
with a bond issue it is the most insistent and 
imperative item to handle. 

The audit will show the collections and weed 
out the bad accounts. The audit will prove the 
exact cost of lumber on cars, the volume of 
sales, the actual selling price and the percent- 
age to be written off for bad debts. With this 
data before him the analyst can figure with a 
good degree of accuracy how large a loan it 
is safe to make on the enterprise. The auditor 
should go back over the books and get the oper- 
ations for five years and compare each year. If 
the books are not so old he should go back as 



30 TIMBER BONDS 

far as possible. The comparative figures for a 
number of years will show if the business has 
been progressing or retrograding. The audit 
should be made by accountants who understand 
what is wanted for a bond loan investigation. 



CHAPTER VII. 

EXAMINATION OP PKOPERTY. 

The timber is estimated either by public 
cruisers or the private cruisers of the bond 
buyers or the underwriters. The following de- 
scription of examining a timber property for 
the purpose of a bond issue is taken from the 
booklet issued by Messrs. Clark L. Poole & 
Company, Chicago. This house has sold around 
$40,000,000.00 worth of timber bonds. They 
have never had a default of interest or prin- 
cipal : 

1 ' When a lumber company desires to make 
a bond issue based on its timber lands and 
sawmill plant as security, we require of it a 
general statement showing the valuation of the 
property, the number of acres of timber land, 
varieties of timber, the estimated amount of 
lumber it will produce and other information of 
a general nature, including the amount and pur- 
pose of the bond issue desired. If the security 
seems ample to make such bond issue safe and 
investigation into the credit and standing of 
the company is satisfactory, we agree to accept 
the bond issue if our own independent prelimin- 
ary investigation results in bearing out the 
statement furnished by the company that has 
made application for the bond issue. 

"At this point the real work of making the 

31 



32 TIMBER BONDS 

bond issue begins. We have in constant em- 
ploy W. E. Straight, of Chicago, formerly of 
Michigan, who is a timber cruiser of high repu- 
tation, and over 30 years' active experience in 
estimating all varieties of timber. A timber 
cruiser's business is to go into the woods and 
make an estimate of the amount of lumber the 
trees will cut, which is given to the owner in 
written reports. As the owner manufactures 
the trees into lumber, he compares the actual 
amount of lumber that is manufactured with 
the estimate of the cruiser. If the reality con- 
forms with the estimate, the cruiser has demon- 
strated his ability for accuracy, as Mr. Straight 
has done for many years for several of the larg- 
est lumber interests of Michigan and elsewhere. 
"Some morning a modest appearing man 
calls on the lumber company which has nego- 
tiated for a bond issue. He asks for the com- 
plete plats of the timber holdings. Mr. Straight 
has begun his investigation, and is preparing to 
make his preliminary survey. After getting in 
his mind a picture of the extent of the timber 
holdings as to acreage and boundaries, he is 
ready to make a start into the woods. Accom- 
panied by the logging superintendent or some- 
one who is familiar with the holdings, he travels 
the woods until he has seen every part of them. 
He goes from one end to the other and criss- 
cross, his work being what is known as a cruis- 
er's running estimate. He discovers the gen- 
eral run of the poorest and best timber, the 



EXAMINATION OF PROPERTY 33 

character of the land and its adaptability for 
agricultural uses after the timber is cut, 
whether there are many lakes, streams and 
marshes ; whether it is an easy or a difficult lum- 
bering proposition; character of the logging 
railroads, whether it would be expensive to con- 
struct them, or whether it could be done at a 
comparatively reasonable cost; whether the 
timber is scattered or is well bunched ; whether 
the streams are practical for floating the logs; 
whether the mill is so located that it can be sup- 
plied with logs at a small cost ; as well as many 
other items of information that are practical in 
connection with the economical operation of a 
lumber manufacturing plant. 

"Having finished his examination of the 
woods, Mr. Straight has still other work to 
do. He makes a careful examination of the 
sawmill plant to ascertain its physical condi- 
tion. It may not be constructed so as to do the 
amount of work a mill of that class should be 
expected to do. He also notes whether care is 
taken to minimize danger from fire by prevent- 
ing the accumulation of refuse, and whether 
there are ample precautionary measures in the 
way of fire protection and preventatives to en- 
able the employes to extinguish a blaze at its 
beginning. His examination also goes into the 
care taken of the equipment of the plant, the 
arrangement with reference to handling the 
output of the mill with small expense, the loca- 
tion of the plant with reference to reaching the 



34 TIMBER BONDS 

market, the situation as to probability of a 
meagre or plentiful car supply, the ability of 
the management, character of the office force 
and a survey of the business generally. When 
Mr. Straight makes his report, if the security 
looks good and other elements are satisfactory, 
we enter into an agreement to take the bond 
issue if detailed estimates, to be made, show 
that there is sufficient timber to be good secur- 
ity for the loan. 

Every timber land bond issue handled by us 
must conform to the following high standard 
of security: 

1. The Company issuing the bonds must be 
well established; in high credit, its officers and 
managers must be thoroughly experienced and 
in good standing among lumbermen. 

2. The lands must be well located; contain 
timber of good quality; the amount thereof to 
be in every case determined by capable, well- 
known timber estimators, employed by us to 
cruise the timber, which in every case must 
have a cash market value of at least 50 per 
cent in excess of the bond issue. 

3. The titles to the lands must be carefully 
examined and approved by our own legal coun- 
sel. 

4. The mortgage securing the bonds must 
contain strict provisions which operate to in- 
sure the regular deposit of an agreed amount 
per thousand feet for all timber cut sufficient 
to retire all of the bonds when about one-half 



EXAB NATION OF PROPERTY 35 

of the timber is consumed; these deposits to 
be applied to the payment of the principal of 
the bonds as the several serials, semi-annually 
or annually, become due. The mortgage makes 
provision for keeping careful check upon the 
cutting of timber and accounting for the same 
to the mortgage trustee. 

Organizing the timber estimating crews is 
the second stage in the making of a timber land 
bond issue. It is left to the cruiser in charge 
and the bond house. Each crew consists of two 
men, an estimator and a compass man. The 
number of crews depends on the acreage of the 
timber holdings and the rapidity with which it 
is desired to have the estimate completed. In 
the case of a recent bond issue made by us on 
Southern' timber lands, there were 124,000 acres 
of pine and cypress timber to be examined in 
a period of six months. Seven crews were put 
out into the field, making a total of 14 men em- 
ployed besides Mr. Straight. These men have 
estimated timber for the Chicago & Northwest- 
ern Eailroad Company, the Duluth & South 
Shore Eailroad Company, Longyear Land 
Company, Marquette, Michigan, Cleveland 
Cliff Iron Company, Negaunee, Michigan, and 
many others. 

An example of the method of work done in 
all bond issues handled is the work on a recent 
bond issue. As the surveys were not in good 
condition, the lines not being plain, the serv- 
ices of a county surveyor were secured. He 



36 TIMBER BONDS 

went to the U. S. Government Land Office and 
obtained the field notes, from which he ran his 
base lines, consisting of north and south sur- 
veys on range lines, and east and west surveys 
on township lines, establishing from these gov- 
ernment field notes all government corners and 
quarter posts besides establishing all eighth 
posts. A sworn copy of his survey is on file 
with us. The bases were run for the purpose 
of giving the timber cruisers base lines and 
corners to work from, so they could prove up 
their work on each and every section or frac- 
tion thereof, as will be seen later. All cruis- 
ing work is done on these lines. Where corners 
are not perfectly plain, a competent surveyor 
is always employed to establish such points 
from government field notes, for although 
cruisers of ability understand how to find cor- 
ners, they take no chances, preferring to have 
them established by competent surveyors, so 
there will be no question of accuracy. A cruiser 
will not begin an estimate until the corners 
are established. 

"All corners having been established, Mr. 
Straight assigned the crews to work. They 
were started at different points and worked 
to a common center with the intention to have 
all the crews meet about the same time. Each 
crew is furnished with plats of the different 
portions of the land allotted to it, the descrip- 
tions all being checked from the original deeds 
to the property. Not less than two crews work 



EXAMINATION OF PROPERTY 37 

together from one camp for the reason that if 
any difficulties arise in the work of either, they 
can settle them. The camp equipment is packed 
in a wagon, teams being kept to move the out- 
fits of the crews. When it is impossible to use 
teams the men pack the outfit on their backs. 
A camp will be occupied on an average of about 
ten days; and the crews will cover from 10 to 
18 sections of land from one camp, depending 
on the character of the country. 

"Each crew covers on foot the several por- 
tions of the woods assigned to it. The crew 
starts at some point on the base given by the 
surveyor and continues to do its work, keeping 
an accurate check on its base as the work pro- 
ceeds. The method used is known as \ horse- 
shoeing a 40,' and is the one most commonly 
used by Mr. Straight, as it enables the cruiser 
to see every portion of the land. If the start 
is made at the southeast corner of a section, 
the cruiser will say to his compassman: 'Go to 
tally 1 north.' When the compassman who 
runs all the lines has gone north 125 paces, or 
about 375 feet, he calls out: ' tally 1 north,' 
and stops until he is directed to move. This 
gives one side of a ten acre tract. The cruiser 
has begun to work toward the compassman and 
counts and estimates each and every tree for a 
distance of 25 paces on each side of his base 
line, making 50 paces in all. At first he meas- 
ures the trees with a tape to verify his eye 
judgment of the circumference and measures 



38 TIMBER BONDS 

windfalls for length to verify his eye judg- 
ment as to the height of trees. If his eye judg- 
ment has been at fault, he keeps measuring un- 
til his eye judgment becomes accurate, then he 
trusts solely to his eye. He keeps tally of each 
tree and at the close of the day figures out his 
totals by an established mathematical rule. 

"Having come near enough to his compass- 
man, he directs him to tally 1 west, and the 
compassman proceeds to pace 125 paces to the 
next tally point, and when he arrives makes it 
known and waits. He has now two sides of 
the 10 acre tract, and before he leaves, es- 
tablishes the center. 

"The cruiser has thus been estimating the 
trees 25 paces on each side of the boundary to 
two ten-acre tracts, a ten-acre tract being about 
the dimensions of a city square. The other 
boundary is only about 300 feet away, so he 
can easily see whether there is any change in 
the character of the timber. If there is, he 
makes a closer examination and records it. 

"The cruiser and his compassman are never 
more than 60 to 125 paces apart. They pro- 
ceed in this way three talleys west and then 
two north, then three east, which brings them 
back to the base line, then they go two north, 
three west, two north, three east, which brings 
them back to the base line, then one north which 
ought to bring them to the quarter post at the 
half section line ; if it does not, they find it and 
correct the estimate. The compassman devotes 



EXAMINATION OF PROPERTY 39 

his entire time to running tally lines under di- 
rection of the cruiser and never leaves a sec- 
tion without checking up with the government 
quarter posts and section corners to prove 
whether his pacing work is accurate and correct. 

If there should be at any time a difference 
in an overrun or shortage in coming out to the 
section lines or corners, the cruiser proceeds 
to correct up his estimate by taking off or add- 
ing such difference, if it can be done ; if it can- 
not, the entire section or description is re-esti- 
mated. In no instance does the cruiser ever 
take chances at guess work. He has positive 
instructions never to leave a section or de- 
scription of land until he is fully satisfied that 
his estimates are accurate and correct. 

"The estimator is given no instructions re- 
garding the amount of land he is to estimate 
each day; that is left entirely to his judgment 
as he finds the situation. When the estimator 
has finished his work on a section of land by 
using the method of horse-shoeing as explained, 
supplemented with stripping, which is actually 
taking the dimensions as nearly as possible by 
the eye, the estimator has an accurate tally of 
each tree on eight acres of each 40 acres with 
its length and other dimensions. In his hand 
he has held a card on which he has kept a tally. 
He also carries a field book in which he notes 
the topography of the land, the location of 
marshes, lakes, streams, wagon roads, logging 
railroads and everything that comes within his 



40 TIMBER BONDS 

observation, together with notations as to the 
surface of the ground, general logging chance, 
character of soil, etc. At night he makes out 
from his field book an accurate plat, or timber 
estimate and field report sheet, one for each 
section of land estimated. 

"One of these plats shows a square mile of 
the timber owned by a large Southern Lumber 
Co., which is estimated to cut 4,765,000 feet of 
lumber from logs 15 inches in diameter and up- 
wards, and 1,033,000 feet from logs 8 inches to 
15 inches in diameter, also 46,000 feet of dead 
timber, all of yellow pine ; 38,000 feet of cypress 
lumber, 30 cypress poles, 385 ties, 2,000 feet of 
gum, 14,000 feet of palmetto and 3,000 feet of 
swamp oak. The estimator in his report says : 
'Pine large and of good quality, not boxed; 
some sapling pine ; surface slightly rolling with 
a considerable slope to the south; soil light, 
sandy loam, good farming land ; pine 573 acres, 
waste 67 acres, total 640 acres. J The estimator 
signs each plat, which is given to Mr. Straight, 
who sends it to us by registered mail or ex- 
press, first making a copy which he delivers to 
the party making the bond issue. These plats 
are useful after the bond issue has been made. 

"In the meantime, Mr. Straight is not idle. 
He carries his bedding, his baggage, and feed 
for his horse, ready to camp and sleep where 
night overtakes him, if he does not strike the 
camp of one of his crews. He is accompanied 
by a compassman and ' horse-shoes' and ' strips,' 



EXAMINATION OP PROPERTY 41 

checking up the work of his crews on foot, using 
the same methods they have used. If there are 
any differences, the work is gone over and cor- 
rections made. Mr. Straight is in the woods 
all the time, going from camp to camp, and his 
men never know when to expect his coming. 
When the work of estimating all the timber has 
been completed, a valuation is placed upon the 
holdings, sawmill, railroad, equipment and other 
property to be pledged for the bonded indebted- 
ness, which completes the preliminary stage 
of making the bond issue. 

"Thus far all the work that has been done 
was for the purpose of determining whether 
there was property which would be security, its 
value and its location. These elements having 
been positively demonstrated, the next step is 
to discover whether the party desiring the 
bond issue has a good title to the property, and 
has the right and power to pledge it as security 
and that there are no liens upon it. This is the 
work of the lawyer, who must be one of high 
standing, familiar with bond issues and whose 
opinion is accepted without question in financial 
circles. After he is satisfied that the company 
owns the title to all the lands in fee simple and 
the details of its incorporation have fulfilled all 
the requirements of the law and that it has the 
legal right to own the property and to pledge 
it as security, the lawyer is ready to draw the 
trust deed and mortgage which conveys the 
timber holdings to a trustee as a pledge for the 



42 TIMBER BONDS 

bonds. The trustee must be a trust company of 
large capital and resources, whose officers are 
recognized as competent and trustworthy, for 
the trustee has important duties to perform 
which extend over a term of years until all of 
the bonds have been paid and the terms of the 
trust deed fulfilled, when the trust company's 
duty is to make a reconveyance of the property 
to the owner. 

" Every possible safeguard that can be 
thought of by astute lawyers is thrown about 
these timber bond issues. There are 20 pro- 
visions in the form of trust deed, each one of 
which requires some duty of the maker of the 
bond issue. Some of them are: punctual pay- 
ment of principal and interest when due; con- 
ditions under which lumber shall be manufac- 
tured, including sinking fund provision for pay- 
ment of certain amount per 1,000 feet of timber 
cut, to the trustee; fire insurance on all build- 
ings and machinery; payment of taxes and 
liens; issuing and delivery of bonds; registra- 
tion of bonds in name of owner, if desired; 
statements in writing of condition of property 
to be furnished and provisions giving the trus- 
tee access to books and vouchers for the pur- 
pose of verifying statements ; and penalties for 
default in agreements. 

"Timber land bond issues are so made that 
the bonds mature serially, a certain portion 
coming due each six months. The payment of 
these bonds when they become due is further 



EXAMINATION OF PROPERTY 43 

assured by the creation of a sinking fund, the 
maker of the bond issue being required to deposit 
with the trustee a certain amount of money be- 
fore the trees are cut down for each 1,000 feet 
of timber to be cut. Accompanying the pay- 
ments to the sinking fund is a sworn statement 
showing by the same descriptions used in the 
trust deed and the timber estimators ' plats, the 
lands from which the timber is to be cut, and 
further certifying under oath that no timber 
has been cut on the lands mortgaged without 
proper payment having been made to the sink- 
ing fund. The maker of the bonds further 
agrees to give free access to all the property, 
books of account and vouchers for the purpose 
of checking the correctness of any such state- 
ments. As these statements are under oath, if 
they are false, the maker will make himself 
liable to criminal prosecution. 

"Through the operation of the sinking fund 
in the timber bond issues the equity grows 
larger from year to year as the bonds are paid 
off, without taking into consideration the an- 
nual increase in the value of the standing tim- 
ber. In the case of one large southern lumber 
company the bond issue was made on the basis 
of $2 per thousand feet stumpage. Under the 
terms of the trust deed this company was re- 
quired to pay into a sinking fund $3.50 per 
thousand feet for timber cut. Through the 
operation of the sinking fund in that issue the 
debt decreases from year to year until the last 



44 TIMBER BONDS 

series of bonds are secured at the rate of 16% 
cents per thousand feet stumpage. 

"In another issue the debt per thousand feet 
stumpage was originally $1.81. This decreases 
from year to year until the debt per thousand 
feet, when the last series of bonds are outstand- 
ing, is 21 cents. This company pays into the 
sinking fund $4 per thousand feet for timber 
cut. 

"It is in checking up the sinking fund that the 
value of the timber cruisers ' plat is again 
shown. Although there is no legal obligation 
on our part to check up sinking fund payments, 
we make a business of doing it, not only for our 
own satisfaction to know that the provisions of 
the trust deed are being fulfilled in every par- 
ticular, but as an additional protection to the 
interests of customers who have bought the 
bonds on our recommendations. The services 
of Mr. Straight are secured. He is given the 
plats and the statements, and cruises the timber 
holdings again in the same careful and pains- 
taking manner as before. He reports on his 
estimates of the amount of timber that has been 
manufactured from the various sections and 
shows the difference between the original esti- 
mate and the actual manufacture into lumber, 
if any. He also investigates all of the other 
timber land properties that are security for the 
bonds, reporting on whether there has been any 
cutting of timber of which no report has been 
made. Thus it will be seen that there is con- 



EXAMINATION OF PROPERTY 45 

stant checking and rechecking for the protec- 
tion of the clients of Clark L. Poole & Com- 
pany. 7 ' 

The foregoing is an excellent description. 
There are several rnles nsed by timber cruisers 
for estimating the amount of lumber in a tree. 
The unit; the ' board foot,' is one square foot 
one inch thick. The Doyle rule, which is very 
generally used, figures as follows : Deduct four 
inches from the diameter of the log as allow- 
ance for slab, square one-fourth of the remain- 
der and multiply by the length of the log in feet. 
The result is the board contents. There is also 
the Eopp rule, the Spaulding rule, the Doyle 
and Scribner rule, the Scribner rule and the 
British Columbia rule. In addition there are 
modifications and combinations of these rules. 
They all depend entirely on the cruiser using 
them and the nature of the timber. The esti- 
mates should be carefully verified before mak- 
ing the loan. 



CHAPTEK VIII. 

CONTKACT TO DELIVEE BONDS. 

To purchase an issue each bond house and 
banker uses a private form of contract or agree- 
ment. These forms range from a verbal under- 
standing to the most elaborate written instru- 
ment. The nature of the document depends to 
some extent on the particular transaction. The 
two forms given below contain all the basic 
clauses and can be modified to suit any specific 
case. These forms are each standard with two 
large bond houses. Form number one is a 
splendid contract in the nature of a letter writ- 
ten by the bond house and accepted by the 
timberman. Form number two, while simpler 
than number one, is an excellent document in 
the shape of a letter written by the timberman 
to the bond house. Form number two is not as 
favorable to the timberman as form number 
one, because the bond house does not accept it 
and can decline the bonds at pleasure : 

FORM NO. 1. 
Gentlemen: — 

From your representations we understand as follows: — 

(1) That you own in fee simple approximately 

acres of timber lands in , being in Town- 
ships , Range 

(2) That upon said acres there is at the pres- 
ent time approximately feet of standing and liv- 
ing timber, consisting of approximately 

(Here insert quantity of each kind.) 

(3) That you also own free of encumbrance plant and 

46 



CONTRACT TO DELIVER BONDS 47 

equipment located in Section , Township , Range 

. . . ., and logging outfit including 

(Here insert descriptions of logging equipment.) 

That said plant is capable of cutting feet of 

lumber, board measure, per day of 10-hour run, and that the 
plant, planing mill and timber lands above mentioned have 
a value in excess of dollars. 

(4) That you desire to proceed forthwith to make an 
issue of Bonds, secured by mortgage which shall be a first 
lien on all the property heretofore mentioned, said bond 

issue to be on basis of not exceeding per thousand 

on the timber as shall be determined in the manner here- 
inafter stated and not to exceed in any event the sum of 
dollars. 

That the Trustee under said mortgage shall consist of 
one trustee, an individual or trust company, or two trustees, 
both an individual and trust company as may be chosen 
and approved by us. 

(5) That said bonds are to be dated 

and bear interest at the rate of 6% per annum, payable 

, and semi-annually thereafter, both principal and 

interest of said bonds to be payable in Gold Coin in 

at the office of the Trustee or such other office as 

may prefer (to be definitely designated in the Mortgage and 
Bond) and that the said bonds shall be in the denominations 
of $1,000 and $500 and become due serially as follows: 

{Here insert serial dates.) 

(6) That all said bonds shall be redeemable before 
maturity on any interest payment date upon ninety days' 
notice at a premium of 3%. 

(7) That the payment of each and all of said bonds — 

both principal and interest — shall be guaranteed by 

in such legal form as shall be satisfactory to our attorney. 

(8) That you will furnish detailed estimates made by 
a competent timber cruiser, to be approved by us, showing 
the. amount of merchantable timber upon the tract of land 
above referred to. 

(9) That you will furnish at your expense an audit of 
your books and accounts made by an auditor selected by 
us and satisfactory to us. 

(10) That you will furnish satisfactory abstracts of title 
to all the above mentioned land and an opinion upon the 
title from some competent attorney-at-law, to be approved 
by us, to the effect that the said titles are clear and unen- 
cumbered and that the mortgage above referred to fur- 
nishes a first lien for the bonds therein described. 

That you will also pay for the preparation by such at- 



48 TIMBER BONDS 

torney of the bonds and the mortgage and for all other 
legal services in connection therewith. 

(11) That the Mortgage or Trust Deed shall be in form 
approved by our counsel and that among other things the 
Mortgage shall provide that the Mortgagor may secure the 
release of the timber under the mortgage upon the payment 
to the Trustee for the benefit of the bondholders the sum of 

per thousand feet stumpage on the estimates as made 

by as above provided herein. 

That the Mortgagor may secure the release of the cut- 
over lands from the lien of the Mortgage provided such 
lands are sold for cash and the cash is paid over to the 
Trustee for the benefit of the bondholders and that such sale 
has the written approval of 

That in case the timber on the land above described or 
any portion thereof shall be damaged by fire or other ele- 
ments, the Mortgagor shall within sixty days after the ex- 
tent of such loss shall be determined pay to the Trustee for 
the benefit of the bondholders the sum of per thou- 
sand feet stumpage on the estimates furnished by 

as above provided herein; the salvage of such timber to 
remain subject to the lien of the Mortgage and when re- 
moved, if removed, in accordance with the above pro- 
visions, the Mortgagor to pay to the Trustee for the benefit 

of the bondholders an additional per thousand feet 

stumpage. 

That in case of default in the payment of either principal 
or interest, the Trustee may and upon demand of the hold- 
ers of 10% of the bonds then outstanding shall declare all 
the bonds then outstanding due and payable, and the Trus- 
tee shall have the same right and duty should there be any 
failure upon the part of the Mortgagor to make the pay- 
ment provided for in case of damage or destruction to the 
timber by fire or other elements; 

That you will furnish us with semi-annual statement of 
the financial condition of , together with an- 
nual audit of your books and accounts made by auditors 
approved by us and also with such other information bear- 
ing upon the security of the bonds as we may desire at 
such times as we may deem it necessary, all of such ex- 
aminations and audits to be made at your expense, and that 
for the purpose of gathering and verifying such informa- 
tion you will give us free access to the books of record and 
account of the 

(12) That in addition to the payment of the cruising 
and legal expenses previously mentioned herein, you agree 
to pay the cost of engraving the bonds, printing of the mort- 



CONTRACT TO DELIVER BONDS 49 

gage and releasing list, trustees' fees, recording fees and 
other incidental expenses. 

(13) That so soon as the said bonds are properly ex- 
ecuted and ready for delivery, they shall be placed in the 
hands of the Bank, with instructions to de- 
liver said bonds to us upon the payment of . . % of the par 
value of the principal thereof plus accrued interest. 

(14) Subject to all the above agrees; 

(a) That if upon investigation they are satisfied of the 
correctness of the above representations with ref- 
erence to the amount and value of the properties men- 
tioned and the title thereto; 

(b) That the Mortgagor and Guarantor are in satisfac- 
tory financial condition; 

(c) That the Bonds of the character and with the se- 
curity above proposed are in their opinion market- 
able; 

(d) That the investigation of the title and timber and 
the preparation of the bonds and mortgage have at 
that time been completed to their satisfaction that 

they will purchase said Bonds on or so 

soon thereafter as they may be ready for delivery at 
. . % of the par value of the principal thereof plus 
accrued interest; 

(15) Should this contract not be carried out on account 
of failure of title or failure of the timber estimator to find 

the amount and value of timber satisfactory to 

or incorrect representations in any of the preceding por- 
tion hereof, you are to reimburse us (and by accepting this 
contract you so agree) for all expenses of every kind in- 
curred by us in this connection up to that time. 

This proposition is subject to prompt acceptance and if 
accepted it will constitute a contract between us. 

Yours truly, 



Accepted: 

FORM NO. 2. 
Gentlemen: — 

We agree to sell you an issue of First Mortgage Bonds 

in the amount of dollars secured by a trust 

deed upon the timber and land now owned or held in the 
name of , also on the logging equip- 
ment, railroads, mills and other properties of the company. 

Under the Trust Deed there will be about acres 

of land and timber, containing approximately 



50 TIMBER BONDS 

feet, these lands and properties being particularly described 
as follows: 

(Here insert legal description.) 

That the title to all of the above property is vested in 
us. That we will proceed forthwith to make an issue 
of dollars of bonds secured by first mort- 
gage, which shall be a prior lien on all the property here- 
tofore mentioned. Interest on the bonds to be at the face 
rate of six (6%) per cent per annum, payable semi-annual- 
ly. The principal of the bonds to be due and payable 
serially, commencing one year from date of the bonds ac- 
cording to the following schedule: 

(Here insert serial dates.) 

The bonds shall be dated 

The trust deed shall contain a sinking fund provision 
for the deposit monthly of dollars per thou- 
sand feet, board measure, lumber tally, on all timber cut 
from the lands of the company during the preceding month, 
and shall also provide that such deposit in the sinking fund 
shall be made in accordance with a sworn statement of 
the operations of the company covering the month for 
which such deposit is made. The depositary for the sink- 
ing fund moneys shall be selected by you and shall pay 
over such sinking fund moneys at the direction of the 
trustee under the trust deed. Such sinking funds shall be 
used to retire the principal of the bonds as they mature and 
any surplus remaining in the sinking fund at the end of 
any six months' period may be used to retire the bonds at 
par and accrued interest and a premium of five (5) per 
cent. 

The trust deed or mortgage shall contain such other 
legal provisions as may be required by you to make said 
bonds marketable and a safe investment. 

The right to prepay the bonds at the end of the first 
year and on any semi-annual interest payment day there- 
after by the payment of principal, accrued interest and a 
premium of (5) per cent, upon sixty (60) days previous 
written notice, shall be retained. 

There shall be furnished to you and the trustee a semi- 
annual balance sheet and an annual audit of our books and 
accounts, made by auditors approved by you, and also an 
audit of our books and accounts by an auditor selected by 
you, and at any time that you may demand it. All of such 
audits and balance sheets to be furnished at the expense of 
the mortgagor. 

Cut-over lands, timber land and timber may be sold for 
cash upon your written approval provided such cash be 



CONTRACT TO DELIVER BONDS 51 

paid into the sinding fund, but such payments not to ex- 
ceed sinking fund stumpage rate. 

There shall be furnished to you at the expense of the 
mortgagor a report and cruise upon the properties involved, 
to be made by a cruiser satisfactory to you and there shall 
also be furnished you without expense on your part, an 
audit of all books and accounts of said companies made by 
an auditor selected by you. 

The expense of all legal work by attorneys selected by 
you, covering all legal procedure of any nature in connec- 
tion with the issuance of the bonds, writing the mortgage, 
examining title, etc., shall be paid by the mortgagor. 

The bonds shall be prepared, lithographed, printed and 
certified at the expense of the mortgagor, and under the 
supervision of your attorneys and shall be in amounts, form 
and text satisfactory to you. 

The trustee under the trust deed shall be selected by 
you and the principal and interest may be payable at any 
place that you may name. 

is to personally guarantee 

the payment of each and all of the bonds issued, both the 
principal and interest, in such form as shall be satisfactory 
to your attorneys. 

That in case of default in the payment of either prin- 
cipal or interest for a period of sixty days, the trustee may 
and upon demand of the holders of 15% of the bonds then 
outstanding shall declare all the bonds then outstanding 
due and payable. 

The bonds are to be turned over to you at .... cents on 
the dollar for each dollar of said bonds. 

Should this contract not be carried out through fault 
of ours, we will reimburse you for all expenses of every 
kind incurred by you in connection with this transaction. 

Yours very truly, 

An analysis of the foregoing forms will give 
the student a sound understanding of what the 
bond house demands from the timberman be- 
fore purchasing his securities. There are deal- 
ers who do not make such exacting requests, 
but such dealers are responsible for practically 
all the defaults in the timber bonds. 



CHAPTER IX. 

LEGAL FEATURES. 

The attorneys passing on a bond issue and 
vouching for the perfection of titles and legal- 
ity of all actions connected with the transaction 
must be very able, experienced and of the high- 
est standing amongst lawyers. The attorneys 
must safeguard the affairs of all parties and 
treat each interest with fairness. They must 
consider the borrower, the bond dealer, the 
trustee and the private investor. 

The timber holdings usually cover a wide 
area. They often extend over several counties 
and sometimes are located in two or more 
states. The descriptions are complicated, and 
the work of passing on them heavy and exact- 
ing. The original records at the county seats 
should always be examined. Some bond houses 
float bonds without investigating further than 
the abstract furnished them. Abstractors are 
human and in isolated districts are sometimes 
careless. It is safe to take the abstracts of well 
known abstract companies, but even then it is 
bad practice. The present owner of the timber 
usually accepts the abstracts furnished him by 
the seller. He does not know how the original 
records read and cannot be blamed later on if 
titles are questioned or clouded. It costs more 
money and is harder work to go over and com- 

52 



LEGAL FEATURES 53 

pare the original records, but it is well worth 
the difference in price. The titles are made 
perfect, the value of the security increased, the 
bonds become a more desirable investment and 
their price is accordingly enhanced. 

The attorneys must examine the resolutions 
of stockholders and directors authorizing the 
bond issue. They must make sure the meetings 
were properly called, the necessary amount of 
shares voting and the bonds legally authorized 
according to the constitution and by-laws of the 
company and any laws of the state or nation 
that might affect them. Some bond houses in- 
sist on an unanimous vote of all the stock in 
favor of the bond issue before they will buy the 
bonds. This is good practice no matter what 
the state laws may call for. It prevents any 
possible trouble with minority interests and 
creates a favorable impression all around. 

The attorney usually makes the arrangements 
with the trustee for the various services to be 
performed in that function. The attorney 
drafts the text of the bond and attends to all 
the other legal matters. A recent timber bond 
issue failed to be accepted at the last moment 
when it was discovered there were defects in 
the legal procedure when the company was in- 
corporated several years before. They were 
purely technical faults due to a slipshod attor- 
ney, but they killed the bonds. Each individual 
bond issue will have its particular legal aspects. 
In general, however, the attorneys must see 



54 TIMBER BONDS 

that the company issuing the bonds has perfect 
title to the property to be mortgaged under the 
trust deed; that there are no liens against the 
property; that the company has been legally 
and properly incorporated; that the company 
has the right to mortgage the property; that 
the meeting of the stockholders at which the 
resolution to bond the property was passed was 
legally and regularly called ; that the necessary 
number of votes were cast in favor of the bond 
issue ; that the mortgage is properly drawn, the 
trustee duly qualified and the bond properly 
lithographed. The most vital work of the at- 
torney is making the mortgage or trust deed. 



CHAPTER X. 

THE TKUST DEED. 

Drawing the mortgage or trust deed is a very 
important part of a bond issue. The mortgage 
outlines the duties of all concerned, describes 
the security and safeguards the bondholders. 
The mortgage should be drawn by a man who 
is a good lawyer, an eminent title attorney and 
who thoroughly understands timber lands, lum- 
ber operations and making bond issues. The 
three following mortgages consist of two or- 
dinary trust deeds and one in which two com- 
panies combine as mortgagors. These docu- 
ments show affairs as handled in the South and 
Pacific Northwest. The titles covered by them 
were all examined on the original records, and 
therefore, they are correct and the descriptions 
accurate. The mortgages are given in full de- 
tail to facilitate their use as a guide and ref- 
erence or a check on other trust deeds. 

To prove the soundness of the practice of go- 
ing to the original records on matters of title, 
it is only necessary to say that all the bonds 
covered by these mortgages are now worth a 
premium. These trust deeds were drawn by 
Mr. Edward E. Barthell, Nashville, Tennessee, 
who is probably the ablest title attorney in the 
United States and one of the best bond lawyers 
in active practice : 

55 



FIRST MORTGAGE 



LINN AND LANE TIMBEE COMPANY 

AND 

C. A. SMITH LUMBEE AND MANUFACTTJEING 

COMPANY 

TO 

UNION TEUST COMPANY 

AND 

FEEDEEICK H. EAWSON 

TEUSTEES 



DATED JUNE 6, 1910 



TO SECUEE 6% GOLD BONDS OF LINN AND LANE 

TIMBEE COMPANY IN THE AMOUNT 

OF $1,500,000. DATED JUNE 6, 1910 



56 



TRUST DEEDS 57 

THIS INSTRUMENT, made and entered into 
June 6, 1910, by and between Linn and Lane 
Timber Company, a corporation organized 
and existing under and by virtue of the 
laws of the State of Minnesota (sometimes 
hereinafter for brevity called the Com- 
pany), party of the first part; C. A. Smith 
Lumber and Manufacturing Company, also 
a corporation organized and existing under 
and by virtue of the laws of the State of 
Minnesota, party of the second part (some- 
times hereinafter referred to as the Lum- 
ber and Manufacturing Company, and said 
two parties being hereinafter sometimes 
referred to as the Grantors), both of which 
corporations have qualified themselves to 
own property and to do business in the 
State of Oregon; and Union Trust Com- 
pany, a corporation organized and existing 
under and by virtue of the laws of the State 
of Illinois (and which is sometimes herein- 
after referred to as the Corporation Trus- 
tee), and Frederick H. Eawson, of Chica- 
go, Illinois, as trustees, parties of the third 
part, 
witnesseth that : 

Whekeas, Linn and Lane Timbee Company 
is the owner of certain lands, timber, timber 
rights, rights of way, and logging rights, in the 
Counties of Coos, Curry, Douglas, Lane, Lin- 
coln and Linn, in the State of Oregon ; and has 
full power and authority under its charter and 



58 TIMBER BONDS 

the laws of the States of Minnesota and Ore- 
gon, to borrow money for the transaction of its 
business and the exercise of its corporate pow- 
ers, to issue its negotiable bonds to evidence 
the indebtedness thus incurred, and to mort- 
gage its property to secure the payment of the 
same; and 

Wheeeas, by unanimous action of its Board 
of Directors, concurred in by the owners and 
holders of its entire capital stock (both of 
which actions have been duly expressed accord- 
ing to law) the Company has resolved to bor- 
row money for its corporate purposes, and to 
issue and dispose of its negotiable mortgage 
bonds therefor, and to secure the payment of 
said bonds, together with the interest thereon, 
by a mortgage or deed of trust in the form of 
this instrument, upon its property hereinafter 
described, together with the rents, issues and 
profits of the same, and which mortgage or 
deed of trust shall be a first lien thereon; and 

Wheeeas, by unanimous action of its Board 
of Directors, concurred in by the owners and 
holders of its entire capital stock (both of which 
actions have been duly expressed according to 
law) the Company has further resolved that 
said bonds shall bear date of June 6, 1910, shall 
be for the aggregate amount of One Million, 
Five Hundred Thousand (1,500,000) Dollars, 
shall be numbered consecutively from 1 to 1,575, 
both numbers inclusive, bonds numbered 1 to 
1,425, both numbers inclusive, being for the 



TRUST DEEDS 59 

principal sum of One Thousand (1,000) Dollars 
each, and bonds numbered 1,426 to 1,575 both 
numbers inclusive, being for the principal sum 
of Five Hundred (500) Dollars each, and which 
bonds shall become due and payable as follows, 
to-wit : 

Bonds numbered 1 to 25 inclusive on December 1, 1911 
Bonds numbered 26 to 50 inclusive on June 1, 1912; 
Bonds numbered 51 to 75 inclusive on December 1, 1912 
Bonds numbered 76 to 100 inclusive on June 1, 1913; 
Bonds numbered 101 to 125 inclusive on December 1, 1913 
Bonds numbered 126 to 150 inclusive on June 1, 1914; 
Bonds numbered 151 to 200 inclusive on December 1, 1914 
Bonds numbered 201 to 250 inclusive on June 1, 1915; 
Bonds numbered 251 to 300 inclusive on December 1, 1915 
Bonds numbered 301 to 350 inclusive on June 1, 1916; 
Bonds numbered 351 to 400 inclusive on December 1, 1916 
Bonds numbered 401 to 450 inclusive on June 1, 1917; 
Bonds numbered 451 to 500 inclusive on December 1, 1917 
Bonds numbered 501 to 550 inclusive on June 1, 1918; 
Bonds numbered 551 to 600 inclusive on December 1, 1918 
Bonds numbered 601 to 650 inclusive on June 1, 1919 ; 
Bonds numbered 651 to 700 inclusive on December 1, 1919 
Bonds numbered 701 to 750 inclusive on June 1, 1920; 
Bonds numbered 751 to 800 inclusive on December 1, 1920 
Bonds numbered 801 to 850 inclusive on June 1, 1921; 
Bonds numbered 851 to 900 inclusive on December 1, 1921 
Bonds numbered 901 to 950 inclusive on June 1, 1922; 
Bonds numbered 951 to 1000 inclusive on December 1, 1922 
Bonds numbered 1001 to 1050 inclusive on June 1, 1923; 
Bonds numbered 1051 to 1100 inclusive on December 1, 1923 
Bonds numbered 1101 to 1150 inclusive on June 1, 1924; 
Bonds numbered 1151 to 1200 inclusive on December 1, 1924 
Bonds numbered 1201 to 1250 inclusive on June 1, 1925; 
Bonds numbered 1251 to 1300 inclusive on December 1, 1925 
Bonds numbered 1301 to 1350 inclusive on June 1, 1926; 
Bonds numbered 1351 to 1425 inclusive on December 1, 1926 
Bonds numbered 1426 to 1575 inclusive on June 1, 1927; 

all payable to bearer (unless registered) in gold 
coin of the United States of America of the 
standard of weight and fineness existing on 
June 6, 1910, notwithstanding any law which 



60 TIMBER BONDS 

may now or hereafter make anything else a 
tender in payment for debts, at the office of 
Union Trust Company, in the City of Chicago 
and State of Illinois, together with interest on 
said bonds at the rate of six (6) per centnm per 
annum, which interest shall be similarly pay- 
able in like gold coin, December 1, 1910, and 
semi-annually thereafter on the first day of 
June and the first day of December in each year 
until the principal sum shall be fully paid, upon 
the presentation and surrender of the coupons 
annexed to each of said bonds as they respec- 
tively become due, at the office of said Trust 
Company ; that the said bonds shall be executed 
in the name of the Company by the President 
(or the Vice-President) and the Secretary of 
the Company, with its corporate seal affixed, and 
that all the interest coupons, issued to evidence 
the interest upon said bonds until their maturity 
shall be authenticated by the fac-simile signa- 
ture of the Treasurer of the Company ; and that 
each of said bonds and each of the coupons 
thereto attached, and the Trustee's and Eeg- 
istrar's certificates endorsed thereon, shall be 
substantially in the forms following, to-wit: 

UNITED STATES OP AMERICA. 
State of Oregon. 

$ Number $ 

Linn and Lane Timber Company 

First Mortgage Six per Cent Gold Bond. 
For value received Linn and Lane Timber Company 
(hereinafter called the Company), a corporation under the 
laws of the State of Minnesota, and duly qualified to do 



TRUST DEEDS 61 

business in the State of Oregon, hereby promises to pay 
to the bearer hereof, or in case this bond be registered, 
then to the registered holder hereof, Dol- 
lars, on the first day of 19 , and to pay 

interest thereon from the date hereof at the rate of six 
(6) per cent per annum payable semi-annually on the first 
day of December and the first day of June in each year, 
upon the presentation and surrender of the coupons hereto 
annexed as they severally become due, both principal and 
interest being payable at the banking house of Union Trust 
Company, in the City of Chicago, and State of Illinois, in 
gold coin of the United States of America, of or equal to 
the present standard of weight and fineness, notwithstand- 
ing any law which may now or hereafter make anything 
else legal tender for the payment of debts, without deduc- 
tion for any United States, State, County, Municipal or 
other tax or taxes or governmental or other charges, which 
the Company or its successors or assigns, or the Trustees 
or either of them, hereinafter mentioned may be required, 
or permitted, to pay, or to deduct or retain therefrom under 
or by reason of any present or future law. 

This bond is one of a series of 1575 bonds in denomina- 
tions of $1,000 and $500 maturing at divers dates during 
the period from December 1, 1911, to June 1, 1927, both 
dates inclusive, amounting in the aggregate as to the prin- 
cipal thereof to $1,500,000 issued under the provisions and 
equally secured by a first mortgage or deed of trust dated 
June 6, 1910, duly executed, acknowledged, recorded and 
delivered by the Company to Union Trust Company and 
Frederick H. Rawson of Chicago, Illinois, as Trustees. The 
said mortgage or deed of trust is joined in by C. A. Smith 
Lumber and Manufacturing Company, a corporation under 
the laws of the State of Minnesota and duly qualified to 
do business in the State of Oregon, conveying certain of 
its property therein described. The said mortgage or deed 
of trust embraces timber, timber lands, logging rights, a 
saw-mill plant, and other similar property m the Counties 
of Coos, Curry, Douglas, Lane, Lincoln and Linn, all in the 
State of Oregon. For a more complete description of the 
property thereby mortgaged; the nature and extent of the 
security; the description of the bonds thereby secured and 
the rights of the holders thereof under the same and the 
terms and conditions upon which said bonds are issued, 
reference is hereby made to said mortgage or deed of trust 
with the same force and effect as if the provisions thereof 
were herein fully set forth. 

In case an event of default as defined in the aforesaid 
mortgage or deed of trust shall occur, then the principal 



62 TIMBER BONDS 

of this bond may be declared and become due and payable 
in the manner and with the effect therein provided. 

This bond is purely a corporate obligation, and no re- 
course shall be had for its payment against any stockholder, 
director or officer of the maker hereof, unless it be upon 
his individual indorsement or guarantee. 

In the manner provided in said mortgage or deed of 
trust, this bond may be redeemed at the election of the 
Company, at any interest payment date before its date of 
absolute maturity upon payment to the holder hereof, or 
to Union Trust Company, one of the Trustees hereunder, 
for the benefit of such holder, of the principal hereof and 
all interest due thereon at the date fixed for such redemp- 
tion, and a premium of two and one-half (2*4) per centum 
on the principal hereof. 

This bond shall pass by delivery unless registered, but 
it may be registered as to the principal hereof in the 
holder's name on books of Union Trust Company, Trustee, 
kept for that purpose, such registry being noted hereon 
by said Trustee, after which only such registered holder 
shall be entitled to receive the principal hereof; and if 
registered no subsequent transfer hereof shall be valid, 
unless made on said Trustee's books and similarly noted 
hereon; but the same may be discharged from registry by 
transfer to bearer, after which it shall be transferable by 
delivery. It may be registered again, however, in the man- 
ner above provided. The registry of this bond shall not 
impair the negotiability of the coupons, but they shall con- 
tinue to be transferable by delivery notwithstanding such 
registration. 

The Company hereby consents in case of the foreclosure 
of the mortgage or deed of trust given to secure the pay- 
ment of the said bonds, to the entry of a deficiency judg- 
ment against it, and that the court may direct in any de- 
cree of foreclosure of said mortgage or deed of trust that 
any balance due with costs and interest, which may remain 
unsatisfied after the sale of the said mortgaged premises 
and the application of the proceeds of such sale toward 
the payment of the said bonds, shall be satisfied from any 
of its property. 

This bond shall not be obligatory for any purpose until 
it shall have been authenticated by the certificate of Union 
Trust Company, one of the Trustees under said mortgage 
or deed of trust, indorsed hereon. 

In witness whereof, Linn and Lane Timber Com- 
pany has caused this instrument to be signed in its cor- 
porate name by its President and its corporate seal to be 
hereto affixed and attested by its Secretary, and the in- 



TRUST DEEDS 63 

terest coupons hereto attached to be authenticated by the 
fac-simile signature of its Treasurer, this sixth day of 
June, 1910. 

Linn and Lane Timber Company, 

By 

Its President. 
Attest : 



Its Secretary. 

On the first day of 19 , Linn 

and Lane Timber Company, a Minnesota corporation will 

pay to bearer Dollars in gold coin of the 

United States of America of the standard existing on June 
6, 1910, at the office of Union Trust Company in the city of 
Chicago, State of Illinois, without deduction for taxes, be- 
ing six months' interest due that date on its first mortgage 
gold bond of June sixth, 1910, No 



Treasurer. 



This is to certify that this is one of the bonds described 
in and secured by the mortgage or deed of trust within 
referred to. 

UNION TRUST COMPANY, Trustee, 

By , 



Notice: There must be no writing in this 
form except by the Trustee, the Union Trust 
Company. 



And wheeeas, C. A. Smith Lumber and Man- 
ufacturing Company is the owner of a mill 
plant, appurtenances and equipment, in Coos 
County, Oregon, and has full authority under 
its charter and the laws of the States of Minne- 
sota and Oregon to mortgage the same in the 
furtherance of its business ; and 



64 TIMBER BONDS 

Whereas, the parties of the first and second 
parts are jointly interested in the carrying out 
of the corporate purposes of Linn and Lane 
Timber Company on account of which Linn and 
Lane Timber Company desires the funds to be 
obtained by it by the execution, issue and ne- 
gotiation of the bonds above described, and the 
C. A. Smith Lumber and Manufacturing Com- 
pany is pecuniarily interested in the sale of 
said bonds, and in the application of the pro- 
ceeds thereof to the aforesaid corporate pur- 
poses of Linn and Lane Timber Company; and 

Whekeas, both the Board of Directors and 
the owners of the entire capital stock of the said 
C. A. Smith Lumber and Manufacturing Com- 
pany by appropriate action regularly taken and 
legally expressed, have unanimously resolved 
that said Lumber and Manufacturing Company 
join in this mortgage and include herein its said 
mill plant and equipment, and the land upon 
which it is located, all as hereinafter described ; 
and 

Whekeas, all things necessary to make said 
bonds when executed by the Company and cer- 
tified by the Corporation Trustee, a valid, bind- 
ing, legal, negotiable obligation of the Com- 
pany, and this instrument a valid mortgage to 
secure the payment thereof, have been done, 
happened and been performed: 

Now therefore, for and in consideration of 
One Dollar ($1.00) in hand paid by the parties 
of the third part to the parties of the first and 



TRUST DEEDS 65 

second parts, respectively, the receipt whereof 
is hereby acknowledged, and the other consid- 
erations herein expressed, and in order to se- 
cure the payment of the principal and interest 
of all of said bonds above described at any time 
outstanding according to their tenor and effect, 
and to secure the performance of all the cove- 
nants and conditions herein contained and to 
declare the terms and conditions upon which 
said bonds are issued or to be issued, and for 
and in consideration of the acceptance or pur- 
chase of said bonds, or any of them, by whom- 
soever may be or become the holders thereof, 
the said Linn and Lane Timbee Company and 
the said C. A. Smith Lumbek and Manufactur- 
ing Company has each for itself executed and 
delivered these presents, and each for itself 
hereby grants, sells, bargains, aliens, releases, 
conveys, assigns, warrants, transfers and mort- 
gages unto said Union Trust Company and 
said Frederick H. Eawson, Trustees, their suc- 
cessors and assigns, with full subrogation to 
any and all warranties or rights in action 
against previous vendors or holders or other 
persons the following described timber, timber 
rights, rights of way, logging rights, logging 
and milling plants and appurtenances, ma- 
chinery, tracts or parcels of land and other 
property lying, being and situate in Coos, 
Curry, Douglas, Lane, Lincoln and Linn Coun- 
ties, State of Oregon, each grantor granting, 
selling, bargaining, aliening, releasing, trans- 



66 TIMBER BONDS 

ferring, conveying, assigning, warranting and 
mortgaging its own property and not the prop- 
erty of the other, that is to say ; 

1. Said C. A. Smith Lumber and Manufac- 
turing Company hereby grants, sells, bargains, 
aliens, releases, conveys, transfers, assigns, 
warrants and mortgages 

Mill Site and Plant. 

Lots three (3) and four (4) and the tide lands 
in front of and abutting upon lots two (2) and 
three (3) and four (4) in Section thirty-six (36) 
of Township twenty-five (25) South of Eange 
thirteen (13) West of the Willamette Meridian; 

Also the lumber mill plant and equipment of 
said C. A. Smith Lumber and Manufacturing 
Company (generally known as the Dean Mill) 
including all saw-mills, planing mills, dry kilns, 
dry sheds, boilers, engines, railroad track, cars 
and locomotives, electric light plant, power 
houses, machine shops, water works and all 
other buildings of every kind, and all machinery 
and equipment in any wise used in connection 
with said lumber mill plant on said lots three 
(3) and four (4) or on said tide lands in front 
of and abutting upon said lots two (2), three 
(3) and four (4) in said Section thirty-six (36), 
Township twenty-five (25) South of Eange 
thirteen (13) West of the Willamette Meridian, 
or operated in connection therewith — all of said 
property above conveyed lying, being and sit- 
uate in Coos County, Oregon, — together with 



TRUST DEEDS 67 

all betterments, additions and improvements of 
every nature and description hereafter placed 
upon said premises, and used or intended to 
be used in connection with the business now car- 
ried on upon said premises; but 

Excepting, however, from this conveyance 
the coal and mineral rights in said lot three (3) 
in said Section thirty-six (36) as the same were 
reserved in the deed from John Norman and 
wife to E. B. Dean and Company, dated October 
18, 1884, and recorded at page 441 in Deed Book 
13 in the office of the County Clerk in Coos 
County, Oregon; 

2. Said Linn and Lane Timber Company 
hereby grants, bargains, sells, aliens, releases, 
transfers, assigns, conveys, warrants and mort- 
gages unto said Trustees, their successors and 
assigns, with full subrogation to any and all 
warranties or rights in action against previous 
vendors or holders, or other persons : 

First. The following timber, timber rights, 
rights of way, logging rights, privileges, and 
other rights, in Coos County, Oregon, to wit : 
(a) All the merchantable timber lying, 
standing or being upon the following de- 
scribed lands : 

The northeast quarter of the northeast 
quarter or lot one (1) and southeast quarter 
of northeast quarter, and the north half of 
the southeast quarter, of Section eleven (11) 
in Township twenty-nine (29) South of 
Eange eleven (11) West of the Willamette 



68 TIMBER BONDS 

Meridian, — together with the right to enter 
upon said land and cut and remove the said 
timber therefrom at any time within ten (10) 
years from November 1, 1906, — also hereby 
granting the right to cut such other timber 
and make such other alterations in or on said 
land as may be required in the cutting and 
removal of said timber; and all timber re- 
maining on said land at the expiration of said 
term of ten years shall revert to and become 
the property of the persons of whom it was 
acquired by the grantor herein ; 

(b) Also all the timber standing or being 
on the south half of the northwest quarter, 
and the northwest quarter of the southwest- 
quarter of Section twenty- three (23) in 
Township twenty-nine (29) South of Eange 
twelve (12) West of the Willamette Merid- 
ian, — together with all rights of way and 
privileges necessary in the removal of said 
timber, also the right to enter upon said land 
and to cut and remove the said timber there- 
from at any time within ten (10) years from 
August 20, 1906; and time being of the es- 
sence of the contract it is understood and 
agreed that all timber standing, lying or be- 
ing upon said lands after the expiration of 
said ten years from August 20, 1906, shall 
revert to and become the property of the 
persons from whom the grantor herein ac- 
quired the same; 

(c) Also all the timber lying, standing or 



TRUST DEEDS 69 

being on the southeast quarter of the north- 
east quarter and the northeast quarter of the 
southeast quarter of Section thirty-four (34) 
in Township twenty-nine (29) South of 
Eange twelve (12) West of the "Willamette 
Meridian, — together with the right to enter 
upon said land and to cut and remove the 
timber therefrom at any time within ten (10) 
years from August 23, 1906; all timber re- 
maining on said land after the expiration of 
said ten year period to revert to and become 
the property of the persons from whom the 
grantor herein acquired the same. 

(d) Also all the merchantable timber 
standing, lying or being on 

Lot three (3), the southwest quarter of the 
northeast quarter, the southeast quarter of 
the northwest quarter, the north half of the 
southeast quarter, and the southwest quarter 
of the southeast quarter, of Section Two (2), 
in Township twenty-nine (29) South of 
Eange thirteen (13) West of the Willamette 
Meridian, — together with the right to enter, 
cut and remove the same at any time within 
fifteen (15) years from March 6, 1907, and 
together with all necessary and desirable 
rights of way for the removal of said timber, 
including rights of way across lot two (2) of 
said Section two (2) ; and time being of the 
essence of this agreement all timber remain- 
ing on the said lands at the expiration of said 
fifteen year period, shall revert to and be- 



70 TIMBER BONDS 

come the property of the persons from whom 
the grantor herein acquired the same ; 

(e) Also all the timber growing, standing 
or down, on 

The southeast quarter of the southeast 
quarter of Section seventeen (17) ; the east 
half of the northeast quarter, the east half 
of the southeast quarter, and the southwest 
quarter of the southeast quarter of Section 
twenty (20) ; and on the west half of the west 
half of the northwest quarter, the west half 
of the northwest quarter of the southwest 
quarter, and the south half of the southwest 
quarter of Section twenty-one (21), in Town- 
ship twenty-nine (29) South of Eange four- 
teen (14) West of the Willamette Meridian; 
together with the right to enter upon said 
land and cut and remove the said timber at 
any time within twenty (20) years from Jan- 
uary 11, 1901; all timber remaining on said 
land after the expiration of the said period, 
to revert to and become the property of the 
persons from whom the grantor herein ac- 
quired the same ; 

(f ) Also all of the timber lying, standing, 
growing, or being upon the 

South half of the north half of Section 
fourteen (14) in Township thirty (30) South 
of Range ten (10) West of the Willamette 
Meridian, with the right of way for roads, 
railroads, side tracks, skidding roads, and 
skid ways, said cutting and carrying away 



TRUST DEEDS 71 

to be accomplished within sixteen (16) years 
from September 20, 1901 ; 

(g) Also all the timber lying, standing or 
being on 

The northwest quarter of the northwest 
quarter, and the south half of the northwest 
quarter of Section two (2) in Township 
thirty (30) South of Eange eleven (11) West 
of Willamette Meridian, — together with the 
right to enter upon said land and cut and re- 
move the timber therefrom at any time with- 
in fifteen (15) years from November 6, 1906; 
• and together with the right to cut such other 
timber and make such other alterations on 
said land as may be required in the cutting 
and removal of said timber. 

All of the property in this clause described 
lying, being and situate in Coos County, State 
of Oregon. 

Second. The following timber, timber rights, 
rights of way, logging rights, privileges, and 
other rights in Curry County, Oregon, to wit : 

(a) All the cedar, fir and oak timber on 

The southwest quarter, of the southwest 
quarter of Section twenty-five (25) ; the south 
half of the southeast quarter of Section 
twenty-six (26), and on the northeast quarter 
of the northeast quarter of Section thirty- 
five (35) in Township thirty-two (32) South 
of Eange fifteen (15) West of the Willamette 
Meridian, together with the right to enter, cut 
and remove said timber at any time within 



72 TIMBER BONDS 

ten (10) years from October 4, 1907, and 
with the right to extend this period for re- 
moval to twenty-five (25) years from October 
4, 1907, npon paying $25.00 per year for such 
extension ; 

(b) Also all the green white cedar and 
green fir timber on 

The northwest quarter of the northeast 
quarter of Section thirty-five (35) in Town- 
ship thirty-two (32) South of Range Fifteen 
(15) West of the Willamette Meridian, to- 
gether with the right to enter, cut and re- 
move the said timber at any time withki 
twenty (20) years from October 4, 1907 ; 

(c) Also all the white cedar and all the 
fir on 

The south half of the northeast quarter, 
and the southeast quarter of the northwest 
quarter of Section thirty-five (35) in Town- 
ship thirty-two (32) South of Range fifteen 
(15) West of the Willamette Meridian, — to- 
gether with the right to enter, cut and remove 
the said timber at any time within twenty 
(20) years from October 4, 1907; 

(d) Also all the timber, lying, standing, or 
being on 

The northeast quarter of the southwest 
quarter, the north half of the southeast 
quarter, and the southeast quarter of the 
southeast quarter of Section thirty-five (35) 
in Township thirty-two (32) South of Range 
fifteen (15) West of the Willamette Meridian, 



TRUST DEEDS 73 

together with the right to enter, cut and re- 
move the same at any time within twenty (20) 
years from October 4, 1907. 

All of said property in this clause de- 
scribed lying, being and situate in Curry 
County, State of Oregon. 
Thikd. The following timber, timber rights, 
rights of way, logging rights, privileges, and 
other rights in Douglas County, Oregon, to wit : 
(a) All the timber lying, standing or be- 
ing on 

The southwest quarter of the southwest 
quarter of Section nine (9) ; the south half of 
the northwest quarter of Section fifteen (15) ; 
the northwest quarter of the northwest quar- 
ter, the east half of the northeast quarter, 
the northwest quarter of the northeast quar- 
ter, and the northeast quarter of the north- 
west quarter of Section sixteen (16) ; the east 
half of the northeast quarter and the 
northeast quarter of the southeast quar- 
ter of Section thirty-three (33), and the 
northwest quarter of the southwest quarter 
of Section thirty-four (34) in Township 
twenty (20) South of Eange eleven (11) 
West of the Willamette Meridian, — together 
with the right to enter, cut and remove the 
same at any time within thirty (30) years 
from April 23, 1907, together with the exclu- 
sive use of said premises for logging pur- 
poses for the said period of thirty years ; 



74 . TIMBER BONDS 

(b) Also all the timber lying, standing 
or being on 

The southwest quarter of the southwest 
quarter of the southeast quarter of Section 
Fifteen (15) ; the south half of the southwest 
quarter, the northeast quarter of the south- 
east quarter, and the south half of the 
southeast quarter of Section sixteen (16) in 
Township twenty-one (21) South of Range 
eleven (11) West of the Willamette Meridian, 
— together with the right to enter, cut and 
remove the same at any time within twenty 
(20) years from April 18, 1907, and together 
with the exclusive right to use said premises 
for logging purposes for the said period of 
twenty years; 

(c) Also all the timber lying, standing or 
being on 

The west half of the northeast quarter, the 
southeast quarter of the northwest quarter 
and the northeast quarter of the southwest 
quarter of Section nine (9) in Township twen- 
ty-two (22) South of Range eleven (11) West 
of the Willamette Meridian, — together with 
the right to enter, cut and remove the same at 
any time within thirty (30) years from June 
21, 1907, and together with the exclusive right 
to use said premises for logging purposes for 
said period of thirty (30) years; 

(d) Also all the timber lying, standing 
or being on 

Lot seven (7) (or southeast quarter of the 



TRUST DEEDS 75 

southeast quarter), and the southwest quar- 
ter of the southwest quarter of Sec- 
tion seventeen (17) ; the south half of 
the northeast quarter, lot two (2) (or the 
southeast quarter of the northwest quarter), 
lots three (3) and four (4) (or the east half 
of the southwest quarter), the west half of 
the southeast quarter, and the northeast quar- 
ter of the southeast quarter of Section eight- 
een (18) ; lot one (1) (or the northeast quar- 
ter of the northeast quarter), the northwest 
quarter of the northeast quarter, the north 
half of the northwest quarter, and the south- 
east quarter of the northwest quarter of Sec- 
tion twenty (20) in Township twenty-two 
(22) South of Eange eleven (11) West of the 
Willamette Meridian, — together with the 
right to enter, cut and remove the same at 
any time within thirty (30) years from April 
17, 1907, and together with the exclusive use 
of said premises for said period of thirty 
years ; 

(e) Also all the timber lying, standing 
or being on the south half of the north half, 
and the south half of Section thirteen (13) 
in Township twenty- two (22) South of Eange 
twelve (12) West of the Willamette Meridian, 
— together with the right to enter, cut and re- 
move the same at any time within thirty (30) 
years from April 4, 1907, and together with 
the exclusive use of said premises for log- 



76 TIMBER BONDS 

ging purposes for the said period of thirty 

(30) years. 

All of the property in this clause described 
lying, being and situate in Douglas County, 
State of Oregon. 

Foukth— LANDS IN COOS COUNTY:, 

All the following lands lying, being and sit- 
uate in Coos County, Oregon: 

Lands in Township twenty-four (24) South, 
Eange eleven (11) West of the Willamette 
Meridian, described as follows: 
North half of southwest quarter of Section 

eleven (11) 

Also, lands in Township twenty-five (25) 
South, Eange ten (10) West of the Willa- 
mette Meridian, described as follows: 
Northwest quarter of Section twenty- two. . (22) 
East half of northeast quarter of Section 

thirty-four (34) 

East half of southeast quarter of Section 

thirty-four (34) 

Southwest quarter of Section thirty-four. . (34) 
Also, lands in Township twenty-five 
(25) South, Eange eleven (11) West of 
the Willamette Meridian, described as 
follows : 

Northeast quarter of Section fifteen (15) 

South half of northwest quarter of Section 

fifteen (15) 

South half of Section fifteen (15) 

East half of east half of Section sixteen. . . (16) 



TRUST DEEDS 77 

East half of Section twenty-one (21) 

North half of northwest quarter of Section 

twenty-two (22) 

Southwest quarter of southeast quarter of 

Section twenty-six (26) 

Northwest quarter of northeast quarter of 

Section thirty-five (35) 

East half of northwest quarter of Section 

thirty-five (35) 

Also, lands in Township twenty-five 

(25) South, Range twelve (12) West of 
the Willamette Meridian, described as 

follows : 
Southeast quarter of southwest quarter of 

Section seven ( 7) 

Southwest quarter of southeast quarter of 

Section seven ( 7) 

Northwest quarter of northeast quarter of 

Section Eighteen (18) 

Northeast quarter of northwest quarter of 

Section eighteen (18) 

Also, lands in Township twenty-six 

(26) South, Eange nine (9) West of the 
Willamette Meridian, described as fol- 
lows: 

Lots one (1), two (2), three (3) and four 
(4) of Section four ( 4) 

South half of northwest quarter of Section 
four (4) 

South half of northeast quarter of Section 
four (4) 

Southeast quarter of Section four ( 4) 



78 TIMBER BONDS 

Lots three (3), four (4), five (5), six (6) 
and seven (7) of Section six ( 6) 

Southeast quarter of northwest quarter of 
Section six ( 6) 

East half of southwest quarter of Section 
six ( 6) 

Southeast quarter of Section six ( 6) 

Also, lands in Township twenty-six 

(26) South, Range ten (10) West of the 
Willamette Meridian, described as fol- 
lows: 

Southwest quarter of Section eight ( 8) 

North half of southeast quarter of Section 

twenty (20) 

Southeast quarter of southeast quarter of 

Section twenty (20) 

North half of northeast quarter of Section 

twenty-four (24) 

North half of northwest quarter of Section 

twenty-four (24) 

North half of southeast quarter of Section 

twenty-four (24) 

North half of southwest quarter of Section 

twenty-four (24) 

Also, lands in Township twenty-seven 

(27) South, Range ten (10) West of the 
Willamette Meridian, described as fol- 
lows: 

South half of northwest quarter of Section 
thirty-two (32) 

North half of southwest quarter of Section 
thirty-two (32) 



TRUST DEEDS 79 

Also, lands in Township twenty-seven 

(27) South, Eange eleven (11) West of 

the Willamette Meridian, described as 

follows : 
Lots one (1), two (2), seven (7) and eight 

(8) of Section twenty-two (22) 

Lots three (3) and four (4) of Section 

twenty-four (24) 

Also, lands in Township twenty-seven 

(27) South, Eange twelve (12) West of 

the Willamette Meridian, described as 

follows : 

North half of Section eight ( 8} 

Southeast quarter of Section ten (10) 

Southeast quarter of Section sixteen (16) 

North half of Section twenty-two (22) 

Southwest quarter of Section twenty-two. . (22) 
Also, lands in Township twenty-seven 

(27) South, Eange fourteen (14) West of 

the Willamette Meridian, described as 

follows : 
Northwest quarter of northeast quarter of 

Section twenty (20) 

Lots three (3) and four (4) of Section 

twenty (20) 

Northeast quarter of northeast quarter of 

Section twenty-eight (28) 

Northwest quarter of northwest quarter of 

Section twenty-eight (28) 

South half of northwest quarter of Section 

twenty-eight (28) 



80 TIMBER BONDS 

East half of southwest quarter of Section 
twenty-eight (28) 

Lots one (1) and two (2) of Section twen- 
ty-nine (29) 

Lot five (5) of Section thirty-three (33) 

Southeast quarter of southeast quarter of 

Section thirty-three (33) 

Also, lands in Township twenty-eight 
(28) South, Eange ten (10) West of the 
Willamette Meridian, described as fol- 
lows: 

Southwest quarter of southeast quarter of 

Section twenty-eight (28) 

Also, lands in Township twenty-eight 
(28) South, Eange eleven (11) West of 
the Willamette Meridian, described . as 
follows : 

East half of northeast quarter of Section 

thirty (30) 

Also, lands in Township twenty-eight 
(28) South, Eange twelve (12) West of 
the Willamette Meridian, described as 
follows : 

Lots one (1) and two (2) of Section four. . ( 4) 

South half of northeast quarter of Section 
four (4) 

Northwest quarter of Section ten; (10) 

Lot five (5) (or northwest quarter of 
northwest quarter) of Section twentysix (26) 

South half of southwest quarter of north- 
west quarter of Section twenty-eight. . . (28) 
Also, lands in Township twenty-nine 



TRUST DEEDS 81 

(29) South, Eange ten (10) West of the 
Willamette Meridian, described as fol- 
lows: 

Lot one (1) of Section fonr ( 4) 

South half of northeast quarter of Section 

four (4) 

Southeast quarter of Section four ( 4) 

Also, lands in Township twenty-nine 
(29) South, Range thirteen (13) West of 
the Willamette Meridian, described as 
follows : 
Lots four (4) and five (5) of Section six. . ( 6) 
Lots six (6) and seven (7) of Section six. . ( 6) 
Southeast quarter of southwest quarter of 

Section six ( 6) 

Also, lands in Township twenty-nine 
(29) South, Eange fourteen (14) West of 
the Willamette Meridian, described as 
follows : 

Lot one (1) of Section one ( 1) 

Southeast quarter of northeast quarter of 

Section one ( 1) 

Northeast quarter of southeast quarter of 

Section one ( 1) 

East half of west half of northwest quarter 

of Section Twenty-one (21) 

East half of northwest quarter of south- 
west quarter of Section twenty-one (21) 

Also, lands in Township thirty (30) 
South, Eange ten (10) West of the Wil- 
lamette Meridian, described as follows: 
Lots two (2) and three (3) of Section two. . ( 2) 



82 TIMBER BONDS 

Northeast quarter of northwest quarter of 

Section fourteen (14) 

Also, lands in Township thirty (30) 
South, Eange eleven (11) West of the 
Willamette Meridian, described as fol- 
lows: 

North half of north half of northeast quar- 
ter of Section two ( 2) 

East half of southwest quarter of Section 
thirty (30) 

West half of southeast quarter of Section 

thirty (30) 

Also, lands in Township thirty (30) 
South, Eange twelve (12) West of the 
Willamette Meridian, described as fol- 
lows: 

Northwest quarter of southeast quarter of 

Section twenty (20) 

Also, lands in Township thirty-one 
(31) South, Eange ten (10) West of the 
Willamette Meridian, described as fol- 
lows: 

North half and southwest quarter of Sec- 
tion fourteen (14) 

Northwest quarter of southeast quarter of 
Section fourteen (14) 

Northeast quarter of northwest quarter of 
Section twenty-four (24) 

South half of Section twenty-four (24) 

Also, lands in Township thirty-one 
(31) South, Eange eleven (11) West of 



TRUST DEEDS 83 

the Willamette Meridian, described as 

follows : 
Northwest quarter of northwest quarter of 

Section twelve (12) 

Southwest quarter of Section twelve (12) 

Northeast quarter of Section twenty- two. . (22) 
Also, lands in Township thirty-one 

(31) South, Range twelve (12) West of 

the Willamette Meridian, described as 

follows : 
Lot eleven (11) of Section twenty-four. . (24) 

All of the lands in this clause described ly- 
ing, being and situate in Coos County, State 
of Oregon. 

Fifth. The following lands lying, being and 
situate in either Coos or Curry County, Oregon, 
in whichever of said counties they may lie, 
to-wit : 

Lands in Township thirty-one (31) 

South, of Range thirteen (13) West of 

the Willamette Meridian, described as 

follows : 
Northwest quarter of Section twelve (12) 

Sixth— LANDS IN CURRY COUNTY: 

All the following lands lying, being and 
situate in Curry County, Oregon : 

Lands in Township thirty-one (31) 
South, Range thirteen (13) West of the 
Willamette Meridian, described as fol- 
lows: 



84 TIMBER BONDS 

Southwest quarter of southeast quarter of 

Section three ( 3) 

South half of southwest quarter of Sec- 
tion three ( 3) 

Southeast quarter of northeast quarter of 

Section nine ( 9) 

Southeast quarter of southwest quarter of 

Section seventeen (17) 

Lets two (2), three (3) and four (4) of 

Section nineteen (19) 

Northeast quarter of southwest quarter of 

Section nineteen (19) 

East half of northwest quarter of Section 

twenty (20) 

Northwest quarter of northeast quarter of 

Section twenty (20) 

Northeast quarter of southwest quarter of 

Section twenty (20) 

Northwest quarter of southwest quarter 

of Section twenty-seven (27) 

North half of northwest quarter of Section, 

twenty-seven (27) 

Southwest quarter of northwest quarter of 

Section twenty-seven (27) 

Southwest quarter of northeast quarter of 

Section thirty-one (31) 

Southeast quarter of Section thirty-one. . (31) 
Southeast quarter of Section thirty- two. . (32) 
East half of northeast quarter of Section 

thirty-three (33) 

South half of northwest quarter of Section 

thirty-three (33) 



TRUST DEEDS 85 

North half of northwest quarter of Section 

thirty-three (33) 

Southeast quarter of southeast quarter of 

Section thirty-three (33) 

Southeast quarter of northwest quarter of 

Section thirty-four (34) 

Also, lands in Township thirty-one 

(31) South, Eange fourteen (14) West 

of the Willamette Meridian, described 

as follows : 
Southwest quarter of southeast quarter of 

Section twenty-four (24) 

Northwest quarter of northeast quarter of 

Section twenty-five (25) 

Northeast quarter of northwest quarter of 

Section twenty-five (25) 

East half of southwest quarter of Section 

twenty-five (25) 

Southeast quarter of Section twenty-five (25) 
Also, lands in Township thirty-two 
(32) South, Eange twelve (12) West 

of the Willamette Meridian, described as 

follows : 
Southwest quarter of northwest quarter of 

Section five ( 5) 

Lot one (1) of Section six ( 6) 

Southeast quarter of northeast quarter of 

Section six ( 6) 

West half of northeast quarter of Section 

seven (7) 

West half of southeast quarter of Section 

seven ( 7) 



86 TIMBER BONDS 

East half of northwest quarter of Section 

seven (7) 

East half of southwest quarter of Section 

seven (7) 

Lots one (1), two (2), three (3), and four 

(4) of Section seven ( 7) 

West half of northeast quarter of Section 

Eighteen (18) 

East half of northwest quarter of Section 

Eighteen (18) 

Lots one (1), two (2), three (3) and four 

(4) of Section eighteen (18) 

East half of southwest quarter of Section 

eighteen (18) 

West half of southeast quarter of Section 

eighteen (18) 

Also, lands in Township thirty-two 

(32) South, Eange thirteen (13) West of 

the Willamette Meridian, described as 

follows : 
Northeast quarter of southwest quarter of 

Section two ( 2) 

Northwest quarter of southeast quarter of 

Section two ( 2) 

Lot two (2) of Section three ( 3) 

South half of northeast quarter of Section 

three (3) 

Southwest quarter of Section three ( 3) 

North half of southeast quarter of Section 

three ( 3) 

Southeast quarter of northeast quarter of 

Section eleven (11) 



TRUST DEEDS 87 

Northeast quarter of southwest quarter of 

Section eleven (11) 

South half of southwest quarter of Section 

eleven (11) 

Northeast quarter of southeast quarter of 

Section eleven (11) 

Northwest quarter of southeast quarter of 

Section eleven (11) 

South half of southeast quarter of Section 

eleven (11) 

Entire Section twelve (12) 

Entire Section thirteen (13) 

Entire Section fourteen (14) 

Northeast quarter of Section fifteen (15) 

South half of northwest quarter of Section 

fifteen (15) 

South half of southwest quarter of Section 

fifteen (15) 

Southeast quarter of Section fifteen (15) 

North half of Section twenty-four (24) 

Also, lands in Township thirty-two 

(32) South, Eange fourteen (14) West of 

the Willamette Meridian, described as 

follows : 
Lots ^.ve (5), six (6) and seven (7) of Sec- 
tion two ( 2) 

Lots ten (10), eleven (11) and twelve (12) 

of Section two ( 2) 

Southwest quarter of Section two ( 2) 

West half of southeast quarter of Section 

two ( 2) 



88 TIMBER BONDS 

Lots five (5), six (6) and seven (7) of Sec- 
tion three ( 3) 

Lots eight (8), nine (9) and ten (10) of 
Section three ( 3) 

Southeast quarter of Section three ( 3) 

North half of southwest quarter of Section 
four (4) 

East half of southeast quarter of Section 
five ( 5) 

Lots one (1) and two (2) (or southeast 
quarter of northeast quarter) of Section 
ten (10) 

Northwest quarter of southeast quarter of 
Section ten (10) 

Southwest quarter of northeast quarter of 
Section eleven (11) 

Lots one (1) and two (2) (or south half of 
northwest quarter) of Section eleven.. (11) 

Also, lands in Township thirty-two 
(32) South, Eange fifteen (15) West of 
the Willamette Meridian, described as 
follows : 

Northeast quarter of northwest quarter of 
Section four ( 4) 

South half of northwest quarter of Section 

four (4) 

All the lands in this clause described lying, 

being and situate in Curry County, Oregon. 

Seventh— LANDS IN DOUGLAS COUNTY: 

All the following lands lying, being and sit- 
uate in Douglas County, Oregon : 



TRUST DEEDS 89 

Lands in Township twenty (20) South, 
Eange seven (7) West of the Willamette 
Meridian, described as follows: 

Southeast quarter of Section six ( 6) 

Also, lands in Township twenty (20) 
South, Eange nine (9) West of the Wil- 
lamette Meridian, described as follows: 
Lots three (3) and four (4) of Section 

two - ( 2) 

South half of northwest quarter of Sec- 
tion two ( 2) 

North half of southwest quarter of Section 

two ( 2) 

Southeast quarter of southwest quarter of 

Section two ( 2) 

Southeast quarter of Section two ( 2) 

Southwest quarter of Section twenty-five. . (25) 
Also, lands in Township twenty (20) 
South, Eange ten (10) West of the Wil- 
lamette Meridian, described as follows: 
Lots five (5), six (6), seven (7) and eight 

(8) of Section three ( 3) 

Lots nine (9), ten (10), eleven (11) and 

twelve (12) of Section three ( 3) 

South half of Section three ( 3) 

West half of Section ten (10) 

Northwest quarter of Section eleven (11) 

Southwest quarter of Section twenty-one. . (21) 

West half of Section twenty-two (22) 

Northwest quarter of southwest quarter of 

Section thirty-six (36) 

Lot six (6) of Section thirty-six (36) 



90 TIMBER BONDS 

Also, lands in Township twenty (20) 
South, Eange eleven (11) West of the 
Willamette Meridian, described as fol- 
lows: 

Southwest quarter of Section fifteen (15) 

Southeast quarter of northeast quarter of 
Section twenty (20) 

Northwest quarter of Section twenty-one. . (21) 

Northeast quarter of southwest quarter of 
Section twenty-one (21) 

West half of southwest quarter of Section 
twenty-one (21) 

West half of northeast quarter of Section 
twenty-two (22) 

North half of northwest quarter of Section 
twenty-two (22) 

South half of Section thirty-two (32) 

Southwest quarter of Section thirty- three . (33) 
Also, lands in Township twenty-one 
(21) South, Eange seven (7) West of the 
Willamette Meridian, described as fol- 
lows: 

Lots one (1), two (2), three (3), and four 
(4) of Section two ( 2) 

Lots five (5), eleven (11) and twelve (12) 
of Section two ( 2) 

Northeast quarter of Section twenty-eight. (28) 
Also, lands in Township twenty-one 
(21) South, Eange nine (9) West of the 
Willamette Meridian, described as fol- 
lows : 



TRUST DEEDS 91 

Lots one (1) and two (2) of Section 

twelve (12) 

West half of northeast quarter of Section 

twelve (12) 

Southwest quarter of Section twelve (12) 

West half of northeast quarter of Section 

fourteen (14) 

West half of southeast quarter of Section 

fourteen (14) 

East half of northwest quarter of Section 

fourteen (14) 

East half of southwest quarter of Section 

fourteen (14) 

West half of Section sixteen (16) 

Also, lands in Township twenty-one 

(21) South, Range eleven (11) West of 

the Willamette Meridian, described as 

follows : 
Lots one (1) and two (2) of Section five. . ( 5) 
Southeast quarter of northeast quarter of 

Section five ( 5) 

Lot one (1) of Section six ( 6) 

Southeast quarter of Section six ( 6) 

Northeast quarter of northeast quarter of 

Section eight ( 8) 

West half of southwest quarter of Section 

eight (8) 

Southwest quarter of southeast quarter of 

Section eight ( 8) 

Northwest quarter of northeast quarter of 

Section nine ( 9) 



92 TIMBER BONDS 

East half of northwest quarter of Section 
nine (9) 

East half of southwest quarter of Section 
ten (10) 

West half of southeast quarter of Section 
ten (10) 

Southeast quarter of northeast quarter of 

Section sixteen (16) 

Also, lands in Township twenty-two 
(22) South, Eange seven (7) West of 
the Willamette Meridian, described as 
follows : 

Lots three (3) and four (4) (or north half 
of northwest quarter) of Section six ( 6) 

South half of northwest quarter of Section 
six ( 6) 

Southwest quarter of Section six ( 6) 

Also, lands in Township twenty-two 
(22) South, Eange eight (8) West of 
the Willamette Meridian, described as 
follows : 

Northeast quarter of northeast quarter of 
Section thirty-two (32) 

South half of northeast quarter of Section 
thirty-two (32) 

Northeast quarter of southwest quarter of 
Section thirty-two (32) 

Southeast quarter of Section thirty-two. . (32) 
Also, lands in Township twenty-two 
(22) South, Eange nine (9) West of the 
Willamette Meridian, described as fol- 
lows: 



TRUST DEEDS 95 

Lots three (3), four (4) and five (5) of 
Section four ( 4) 

Lots six (6) and seven (7) of Section four. ( 4) 

East half of southwest quarter of Section 
four ( 4) 

Lots one (1), two (2), three (3) and four 
(4) (or north half of north half) of Sec- 
tion ten . (10) 

Lot five (5) (or southwest quarter of 
northwest quarter) of Section ten (10) 

Lot ten (10) (or southeast quarter of 
northeast quarter) of Section ten (10) 

Southwest quarter of northeast quarter of 
Section ten (10) 

Southeast quarter of northwest quarter of 
Section ten (10) 

Northeast quarter of Section twenty (20) 

Southeast quarter of Section twenty-four. (24) 

Northwest quarter of Section twenty- 
eight (28) 

Northwest quarter of southwest quarter of 
Section twenty-eight (28) 

Lots four (4), five (5), six (6) and seven 

(7) of Section twenty-eight (28) 

Also, lands in Township twenty-two 
(22) South, Eange eleven (11) West of 
the Willamette Meridian, described as 
follows : 

Southwest quarter of northeast quarter of 
Section six ( 6) 

Lots four (4) and five (5) of Section six. . ( 6) 



94 TIMBER BONDS 

Northwest quarter of southeast quarter of 

Section six ( 6) 

North half of southeast quarter of Section 

seven ( 7) 

Lot six (6) of Section seven ( 7) 

Lots one (1) and two (2) of Section eight. ( 8) 
West half of northeast quarter of Section 

eight ( 8) 

Lot seven (7) of Section eight ( 8) 

Also, lands in Township twenty-two 

(22) South, Eange twelve (12) West of 
the Willamette Meridian, described as 
follows : 

North half of northeast quarter of Section 

twenty-three (23) 

Also, lands in Township twenty-three 

(23) South, Eange nine (9) West of the 
Willamette Meridian, described as fol- 
lows: 

Lots five (5) and six (6) of Section six ( 6) 

Also, lands in Township Twenty-four 

(24) South, Eange seven (7) West of the 
Willamette Meridian, described as fol- 
lows : 

Southwest quarter of northwest quarter of 
Section twenty-four (24) 

Northeast quarter of southwest quarter of 
Section twenty-four (24) 

West half of southwest quarter of Section 

twenty-four (24) 

Also, lands in Township twenty-four 



TRUST DEEDS 95 

(24) South, Range eight (8) West of the 
Willamette Meridian, described as fol- 
lows: 

Southeast quarter of Section two ( 2) 

Northwest quarter of Section fourteen. . . . (14) 

West half of west half of Section twenty- 
six (26) 

Also, lands in Township twenty-five (25) 
South, Range eight (8) West of the 
.Willamette Meridian, described as fol- 
lows : 

Northeast quarter of northwest quarter of 
Section twelve (12) 

West half of northwest quarter of Section 
twelve (12) 

Northwest quarter of southwest quarter of 
Section twelve (12) 

South half of southwest quarter of Section 
twelve (12) 

South half of southeast quarter of Section 
twelve (12) 

Northeast quarter of Section twenty-eight. (28) 
Also, lands in Township twenty-six 
(26) South, Range eight (8) West of the 
Willamette Meridian, described as fol- 
lows: 

Southwest quarter of northeast quarter of 
Section eight ( 8) 

North half of northwest quarter of Section 
eight ( 8) 

Southeast quarter of northwest quarter of 
Section eight ( 8) 



96 TIMBER BONDS 

Northeast quarter of southwest quarter of 

Section eight ( 8) 

North half of southeast quarter of Section 

eight (8) 

Southeast quarter of southeast quarter of 

Section eight ( 8) 

South half of northwest quarter of Section 

thirty-two (32) 

North half of southwest quarter of Section 

thirty-two (32) 

Also, lands in Township twenty-six 

(26) South, Eange nine (9) West of the 
Willamette Meridian, described as fol- 
lows: 

Southwest quarter of Section two ( 2) 

Northwest quarter of Section twelve (12) 

North half of southwest quarter of Section 

twelve (12) 

South half of northeast quarter of Section 

fourteen (14) 

Southeast quarter of northwest quarter of 

Section fourteen (14) 

Northeast quarter of southwest quarter of 

Section fourteen (14) 

Northeast quarter of Section twenty- two. (22) 
Also, lands in Township twenty-seven 

(27) South, Eange seven (7) West of the 
Willamette Meridian, described as fol- 
lows: 

Lots one (1), two (2), three (3) and four 
(4) of Section six ( 6) 



TRUST DEEDS 97 

Lots five (5), six (6) and seven (7) of Sec- 
tion six ( 6) 

South half of northeast quarter of Section 
six ( 6) 

Southeast quarter of northwest quarter of 
Section six ( 6) 

East half of southwest quarter of Section 
six ( 6) 

Southeast quarter of Section six ( 6) 

Lots one (1), two (2), three (3) and four 
(4) of Section eighteen (18) 

East half of northwest quarter of Section 
eighteen (18) 

East half of southwest quarter of Section 

eighteen (18) 

Also, lands in Township twenty-seven 
27) South, Eange eight (8) West of the 
Willamette Meridian, described as fol- 
lows: 

Northeast quarter of Section eight ( 8) 

West half of northwest quarter of Section 
eight (8) 

Entire Section twelve (12) 

Entire Section fourteen (14) 

Northeast quarter of northeast quarter of 
Section twenty-two (22) 

South half of northeast quarter of Section 
twenty-two (22) 

Entire Section twenty-four (24) 

Also, lands in Township thirty (30) 
South, Eange nine (9) West of Willa- 
mette Meridian, described as follows : 



98 TIMBER BONDS 

Southwest quarter of northwest quarter of 
Section fourteen (14) 

Northwest quarter of northeast quarter of 
Section seventeen (17) 

North half of northwest quarter of Section 
eighteen (17) 

North half of northeast quarter of Section 

eighteen (18) 

Also, lands in Township thirty-one 
(31) South, Eange eight (8) West of the 
Willamette Meridian, described as fol- 
lows: 

Lots three (3), four (4), nine (9) and ten 

(10) of Section eighteen (18) 

Also, lands in Township thirty-one 
(31) South, Eange nine (9) West of the 
Willamette Meridian, described as fol- 
lows: 

West half of northeast quarter of Section 
eighteen . (18) 

East half of northwest quarter of Section 
eighteen (18) 

Lots one (1) and two (2) of Section 

eighteen (18) 

All the lands in this clause described lying, 

being and situate in Douglas County, Oregon. 

Eighth— LANDS IN LANE COUNTY: 
All the following lands lying, being and sit- 
uate in Lane County, Oregon : 

Lands in Township fifteen (15) South, 
Eange three (3) East of the Willamette 
Meridian, described as follows: 



TRUST DEEDS 99 

South half of southwest quarter of Section 

thirty-five (35) 

Also, lands in Township twenty-three 
(23) South, Eange one (1) West of the 
Willamette Meridian, described as fol- 
lows: 

Northeast quarter of Section eighteen. ... (18) 
All the lands in this clause described lying, 

being and situate in Lane County, Oregon. 
Ninth. The following lands lying, being 

and situate in either Lane or Linn County, 

Oregon, in whichever of said counties they may 

lie, to wit : 

Lands in Township fifteen (15) South 
of Eange three (3) East of the Willa- 
mette Meridian, described as follows: 

Southeast quarter of northwest quarter of 
Section thirty-five (35) 

Tenth— LANDS IN LINCOLN COUNTY: 

All the following lands lying, being and sit- 
uate in Lincoln County, Oregon : 

Lands in Township fourteen (14) 
South, Eange eleven (11) West of the 
Willamette Meridian, described as fol- 
lows: 
Lots nineteen (19), twenty-one (21) and 

twenty-two (22) of Section six ( 6) 

East half of southwest quarter of Section 

six ( 6) 

Southeast quarter of Section six ( 6) 

Also, lands in Township fourteen (14) 



100 TIMBER BONDS 

South, Eange twelve (12) West of the 
Willamette Meridian, described as fol- 
lows: 

Lots sixteen (16) and seventeen (17) of 
Section one ( 1) 

Lots eighteen (18) and nineteen (19) of 
Section one ( 1) 

North half of southwest quarter of Section 
one (1) 

Southeast quarter of Section one ( 1) 

Lots twelve (12), thirteen (13) and four- 
teen (14) of Section two ( 2) 

West half of northeast quarter of Section 
twelve (12) 

Northwest quarter of southwest quarter of 
Section twelve (12) 

Southeast quarter of northeast quarter of 
Section twenty-three (23) 

East half of southwest quarter of Section 
twenty-three (23) 

Entire Section twenty-five (25) 

All the lands in this clause described lying, 

being and situate in Lincoln County, Oregon. 

Eleventh— LANDS IN LINN COUNTY: 

All the following lands lying, being and sit- 
uate in Linn County, Oregon : 

Lands in Township twelve (12) South, 

Eange two (2) East of the Willamette 

Meridian, described as follows: 
East half of northeast quarter of Section 

sixteen (16) 



TRUST DEEDS 101 

East half of southeast quarter of Section 

sixteen (16) 

Also, lands in Township twelve (12) 
South, Range three (3) East of the Wil- 
lamette Meridian, described as follows: 

Entire Section sixteen (16) 

North half of northeast quarter of Section 
thirty-three (33) 

Northwest quarter of northwest quarter of 
Section thirty-four (34) 

Southeast quarter of northwest quarter of 
Section thirty-four (34) 

Northwest quarter of southwest quarter of 
Section thirty-four (34) 

Northeast quarter of Section thirty-six. . . (36) 

Northeast quarter of northwest quarter of 
Section thirty-six (36) 

South half of northwest quarter of Section 
thirty-six (36) 

South half of Section thirty-six (36) 

Also, lands in Township twelve (12) 
South, Range four (4) East of the Willa- 
mette Meridian, described as follows : 

Entire Section thirty-six (36) 

Also, lands in Township thirteen (13) 
South, Range one (1) East of the Willa- 
mette Meridian, described as follows: 

Southeast quarter of northeast quarter of 
Section two ( 2) 

Northeast quarter of Section ten (10) 

Southwest quarter of Section ten (10) 



102 TIMBER BONDS 

West half of southeast quarter of Section 

ten (10) 

Southeast quarter of southeast quarter of 

Section ten (10) 

North half of northeast quarter of Section 

fourteen (14) 

Southeast quarter of northeast quarter of 

Section fourteen (14) 

East half of southeast quarter of Section 

fourteen (14) 

North half of southwest quarter of Section 

sixteen (16) 

South half of northeast quarter of Section 

thirty-six (36) 

South half of northwest quarter of Section 

thirty-six (36) 

Also, lands in Township thirteen (13) 

South, Eange two (2) East of the Willa- 
mette Meridian, described as follows: 
South half of southeast quarter of Section 

two ( 2) 

Southwest quarter of Section four ( 4) 

South half of northeast quarter of Section 

six (6) 

Lot seven (7) of Section six ( 6) 

Southeast quarter of southwest quarter of 

Section six , ( 6) 

Southeast quarter of Section six ( 6) 

North half of northeast quarter of Section 

eight ...( 8) 

North half of northwest quarter of Section 

eight (8) 



TRUST DEEDS 103 

Southwest quarter of Northwest quarter of 

Section eight ( 8) 

East half of southeast quarter of Section 

eight ( 8) 

North half of northeast quarter of Section 

fourteen , (14) 

North half of northwest quarter of Section 

fourteen (14) 

Southwest quarter of northeast quarter of 

Section fourteen (14) 

Southeast quarter of northwest quarter of 

Section fourteen (14) 

North half of southwest quarter of Section 

fourteen (14) 

Southeast quarter of Section fourteen (14) 

North half of northeast quarter of Section 

twenty (20) 

North half of northwest quarter of Section 

twenty (20) 

Southeast quarter of southeast quarter of 

Section twenty-six (26) 

Southwest quarter of southwest quarter of 

Section twenty-six (26) 

West half of northeast quarter of Section 

twenty-eight (28) 

East half of northwest quarter of Section 

twenty-eight (28) 

Northeast quarter of southwest quarter of 

Section twenty-eight (28) 

West half of southeast quarter of Section 

twenty eight (28) 

Northeast quarter of Section thirty (30) 



104 TIMBER BONDS 

West half of northwest quarter of Section 

thirty-two (32) 

North half of southwest quarter of Section 

thirty-two (32) 

Southwest quarter of Section thirty-four. . (34) 
South half of southeast quarter of Section 

thirty-four (34) 

Northeast quarter of Section thirty-six. . . (36) 
Also, lands in Township thirteen (13) 

South, Eange three (3) East of the Wil- 
lamette Meridian, described as follows : 
Lots one (1) and two (2) of Section two. . ( 2) 
South half of northeast quarter of Section 

two ( 2) 

Lot four (4) of Section two ( 2) 

South half of northwest quarter of Section 

two ( 2) 

West half of southwest quarter of Section 

two ( 2) 

Southeast quarter of southwest quarter of 

Section two ( 2) 

Northeast quarter of southeast quarter of 

Section two ( 2) 

South half of southeast quarter of Section 

two ( 2) 

Northeast quarter of southeast quarter of 

Section four ( 4) 

South half of southeast quarter of Section 

four ( 4) 

Northwest quarter of northeast quarter of 

Section eight ( 8) 



TRUST DEEDS 105 

Southeast quarter of northeast quarter of 

Section eight ( 8) 

Southeast quarter of northwest quarter of 

Section eight ( 8) 

Northeast quarter of southwest quarter of 

Section eight ( 8) 

South half of southwest quarter of Section 

eight (8) 

Southwest quarter of southeast quarter of 

Section eight ( 8) 

Southwest quarter of northwest quarter of 

Section nine ( 9) 

West half of southwest quarter of Section 

nine (9) 

North half of northeast quarter of Section 

ten (10) 

East half of northwest quarter of Section 

ten (10) 

Southwest quarter of Section ten (10) 

Southeast quarter of southeast quarter of 

Section ten (10) 

North half of northeast quarter of Section 

twelve (12) 

East half of northwest quarter of Section 

twelve (12) 

Northeast quarter of southwest quarter of 

Section twelve (12) 

North half of Section sixteen (16) 

Southwest quarter of Section sixteen (16) 

North half of southeast quarter of Section 

sixteen (16) 



106 TIMBER BONDS 

West half of northeast quarter of Section 

eighteen (18) 

Northeast quarter of northwest quarter of 

Section eighteen (18) 

Lot two (2) of Section eighteen. (18) 

Southeast quarter of northwest quarter of 

Section eighteen (18) 

Lot three (3) of Section eighteen (18) 

Southwest quarter of northwest quarter of 

Section thirty-four (34) 

Southeast quarter of southeast quarter of 

Section thirty-four (34) 

Also, lands in Township thirteen (13) 

South, Eange four (4) East of the Willa- 
mette Meridian, described as follows : 
Lots one (1), two (2), three (3) and four 

(4) of Section one ( 1) 

Southeast quarter of northeast quarter of 

Section one ( 1) 

Southwest quarter of Section one ( 1) 

Northeast quarter of southeast quarter of 

Section one ( 1) 

South half of southeast quarter of Section 

one (1) 

Southwest quarter of Section two ( 2) 

Lots three (3), four (4) and five (5) of 

Section six ( 6) 

Southeast quarter of northwest quarter of 

Section six ( 6) 

Lots six (6) and seven (7) of Section six. . ( 6) 
East half of southwest quarter of Section 

six ( 6) 



TRUST DEEDS 107 

East half of northeast quarter of Section 
twelve (12) 

Northwest quarter of Section twelve (12) 

East half of southeast quarter of Section 
twelve (12) 

Entire Section sixteen (16) 

Northeast quarter of northwest quarter of 
Section twenty-three (23) 

South half of northwest quarter of Section 
twenty-three (23) 

Northwest quarter of southwest quarter of 

Section twenty-three (23) 

Also, lands in Township fourteen (14) 
South, Eange one (1) East of the Wil- 
lamette Meridian, described as follows: 

Lots three (3) and four (4) of Section two. ( 2) 

East half of southwest quarter of Section 
two ( 2) 

Northwest quarter of southeast quarter of 
Section two ( 2) 

South half of southeast quarter of Section 
two ( 2) 

Northeast quarter of northwest quarter of 
Section twelve (12) 

Southwest quarter of northwest quarter of 
Section twelve (12) 

East half of southeast quarter of north- 
west quarter of Section twelve (12) 

North half of northeast quarter of Section 
fourteen (14) 



108 TIMBER BONDS 

Southeast quarter of northeast quarter of 
Section fourteen 

North half of southeast quarter of Section 
fourteen 

Southwest quarter of northwest quarter of 
Section nineteen 

Northwest quarter of Section twenty-two. 

Southeast quarter of Section twenty-two . . 

Southeast quarter of Section twenty-four. 

Northeast quarter of northeast quarter of 
Section twenty-six 

West half of northeast quarter of Section 
twenty-six 

Southwest quarter of Section twenty-six. . 
Also, lands in Township fourteen (14) 
South, Eange two (2) East of the Wil- 
lamette Meridian, described as follows : 

Lots one (1) and two (2) of Section four. . 

South half of northeast quarter of Section 
four 

North half of Lot three (3) of Section four. 

North half of Lot four (4) of Section four. 

West half of south half of Lot four of Sec- 
tion four 

West half of southwest quarter of north- 
west quarter of Section four 

Northwest quarter of southwest quarter of 
Section four 

Lots one (1) and two (2) of Section six 

South half of northeast quarter of Section 
six 

Lot three (3) of Section six 



TRUST DEEDS 109 



Southeast quarter of northwest quarter of 
Section six 

Lots six (6) and seven (7) of Section six. . 

Southeast quarter of southwest quarter of 
Section six . 

Northeast quarter of southeast quarter of 
Section six 

South half of southeast quarter of Section 
six 

Northwest quarter of northeast quarter of 
Section eight 

North half of northwest quarter of Section 
eight 

North half of southwest quarter of north- 
west quarter of Section eight 

Southwest quarter of southwest quarter of 
northwest quarter of Section eight 

North half of southeast quarter of north- 
west quarter of Section eight 

North half of northeast quarter of south- 
west quarter of Section eight 

West half of southwest quarter of Section 
eight 

South half of southeast quarter of south- 
west quarter of Section eight 

Lot three (3) of Section ten 

Lots one (1) and two (2) of Section twelve. 

South half of northeast quarter of Section 
twelve 

Lots three (3) and four (4) of Section 
twelve 



6) 
6) 

6) 

6) 

6) 

8) 
8) 
8) 
8) 
8) 

8) 

8) 

8) 
10) 
12) 

12) 

12) 



110 TIMBER BONDS 

Southeast quarter of northwest quarter of 

Section twelve (12) 

North half of southeast quarter of Section 

twelve (12) 

East half of southeast quarter of Section 

fourteen (14) 

Lots three (3) and four (4) of Section six- 
teen (16) 

Southwest quarter of northwest quarter of 

Section sixteen (16) 

South half of southwest quarter of Section 

sixteen (16) 

South half of southeast quarter of Section 

sixteen (16) 

Northeast quarter of southwest quarter of 

Section eighteen (18) 

Southeast quarter of southeast quarter of 

Section eighteen (18) 

North half of northeast quarter of Section 

twenty-two (22) 

Southeast quarter of northeast quarter of 

Section twenty-two „ (22) 

Northwest quarter of Section twenty-two. (22) 
Southeast quarter of Section twenty-two. (22) 
Northwest quarter of Section twenty-six. . (26) 

North half of Section twenty-eight (28) 

Southeast quarter of Section twenty-eight. (28) 

Northeast quarter of Section thirty (30) 

Lots three (3) and four (4) of Section 

thirty (30) 

East half of southwest quarter of Section 

thirty (30) 



TRUST DEElDS 111 

Southeast quarter of Section thirty (30) 

Northwest quarter of Section thirty-two. . (32) 
Also, lands in Township fourteen (14) 

South, Eange three (3) East of the Wil- 
lamette Meridian, described as follows: 

Lot four (4) of Section two ( 2) 

South half of northwest quarter of Section 

two ( 2) 

East half of southeast quarter of Section 

two ( 2) 

Lot two (2) and south half of northeast 

quarter of Section four ( 4) 

Lots three (3) and four (4) of Section 

four ( 4) 

South half of northwest quarter of Section 

four ( 4) 

West half of southwest quarter of Section 

four ( 4) 

Southeast quarter of southwest quarter of 

Section four ( 4) 

Southeast quarter of Section four ( 4) 

Lot one (1) and south half of northeast 

quarter of Section six ( 6) 

Lots four (4) and five (5) of Section six.( 6) 
Southeast quarter of northwest quarter of 

Section six ( 6) 

Lots six (6) and seven (7) of Section six.( 6) 
Northeast quarter of southwest quarter of 

Section six ( 6) 

Northeast quarter of southeast quarter of 

Section six ( 6) 



112 TIMBER BONDS 

South half of southeast quarter of Section 

six ( 6) 

Southwest quarter of northeast quarter of 

Section eight ( 8) 

West half of northwest quarter of Section 

eight (8) 

Southeast quarter of northwest quarter of 

Section eight ( 8) 

North half of southwest quarter of Section 

eight (8) 

Southwest quarter of southwest quarter of 

Section eight ( 8) 

Southeast quarter of Section eight ( 8) 

West half of Section ten (10) 

Southwest quarter of northeast quarter of 

Section eleven (11) 

Northwest quarter of southeast quarter of 

Section eleven (11) 

Southeast quarter of southeast quarter of 

Section eleven (11) 

South half of northeast quarter of Section 

twelve (12) 

East half of northwest quarter of Section 

twelve (12) 

East half of southwest quarter of Section 

twelve (12) 

Northeast quarter of southeast quarter of 

Section twelve (12) 

Southwest quarter of southeast quarter of 

Section twelve (12) 

Entire Section sixteen (16) 



TRUST DEEDS 113 

North half of northeast quarter of Section 

seventeen (17) 

Southeast quarter of northeast quarter of 

Section eighteen (18) 

Lot four (4) of Section eighteen (18) 

Southeast quarter of Section eighteen. . . . (18) 

Southwest quarter of Section twenty (20) 

Southeast quarter of Section twenty-six. . (26) 

Entire Section thirty-six (36) 

Also, lands in Township fourten (14) 

South, Eange four (4) East of the "Wil- 
lamette Meridian, described as follows: 
Southeast quarter of southeast quarter of 

Section seven ( 7) 

North half of southwest quarter of Section 

eight (8) 

Southeast quarter of southeast quarter of 

Section eight ( 8) 

South half of northwest quarter of Section 

fifteen (15) 

Entire Section sixteen (16) 

Northeast quarter of southeast quarter of 

Section seventeen (17) 

Southeast quarter of northeast quarter of 

Section eighteen (18) 

Southwest quarter of southwest quarter of 

Section twenty (20) 

Southeast quarter of southwest quarter of 

Section twenty-two (22) 

Northwest quarter of northeast quarter of 

Section twenty-four (24) 



114 TIMBER BONDS 

Northwest quarter of northwest quarter of 
Section twenty-four (24) 

Northwest quarter of southwest quarter of 
Section twenty-four (24) 

Southeast quarter of southwest quarter of 
Section twenty-four (24) 

Southeast quarter of Section twenty-four. (24) 

Northwest quarter of northeast quarter of 
Section twenty-five (25) 

Northeast quarter of northwest quarter of 
Section twenty-five (25) 

Northeast quarter of northeast quarter of 
Section twenty-nine (29) 

South half of northeast quarter of Section 
twenty-nine (29) 

East half of west half of Section twenty- 
nine (29) 

West half of southeast quarter of Section 
twenty-nine (29) 

Northwest quarter of northeast quarter of 

Section thirty-two (32) 

Also, lands in Township fifteen (15) 
South, Eange three (3) East of the Wil- 
lamette Meridian, described as follows: 

Lots one (1), two (2), three (3), and four 
(4) of Section one ( 1) 

Lots five (5), six (6), seven (7), and eight 
(8) of Section one ( 1) 

Lots nine (9), ten (10), eleven (11) and 
twelve (12) of Section one ( 1) 

Lots thirteen (13), fourteen (14), fifteen 
(15) and sixteen (16) of Section one. . . . ( 1) 



TRUST DEEDS 115 

South half of Section one ( 1) 

Lots one (1), two (2), three (3) and four 

(4) of Section two ( 2) 

Lots five (5), six (6), seven (7) and eight 

(8) of Section two ( 2) 

Lots nine (9), ten (10), eleven (11) and 

twelve (12) of Section two ( 2) 

Lots thirteen (13) and sixteen (16) of Sec- 
tion two (2) 

West half of southwest quarter of Section 

two ( 2) 

Southeast quarter of southwest quarter of 

Section two ( 2) 

South half of southeast quarter of Section 

two ( 2) 

Lots one (1), two (2), three (3) and four 

(4) of Section three ( 3) 

Lots five (5), six (6), seven (7) and eight 

(8) of Section three ( 3) 

Lots nine (9), ten (10), eleven (11) and 

twelve (12) of Section three ( 3) 

Lots thirteen (13), fourteen (14), fifteen 

(15), and sixteen (16) of Section three. ( 3) 

South half of Section three ( 3) 

Lots one (1), two (2), three (3) and four 

(4) of Section four ( 4) 

Lots iive (5), six (6), seven (7) and eight 

(8) of Section four ( 4) 

Lots nine (9), ten (10), eleven (11) and 

twelve (12) of Section four ( 4) 

Lots thirteen (13), fourteen (14), fifteen 

(15) and sixteen (16) of Section four ( 4) 



116 TIMBER BONDS 

South half of Section four ( 4) 

Lots one (1), two (2), three (3) and four 

(4) of Section five ( 5) 

Lots five (5), six (6), seven (7) and eight 

(8) of Section five ( 5) 

Lots nine (9), ten (10), eleven (11) and 

twelve (12) of Section five ( 5) 

Lots thirteen (13), fourteen (14), fifteen 

(15) and sixteen (16) of Section five..( 5) 

South half of Section five ( 5) 

Lots one (1), two (2), three (3) and four 

(4) of Section six ( 6) 

Lots five (5), six (6), seven (7) and eight 

(8) of Section six ( 6) 

Lots nine (9), ten (10), eleven (11) and 

twelve (12) of Section Six (6) 

Lots thirteen (13) and fourteen (14) of 

Section six ( 6) 

East half of southwest quarter of Section 

six ( 6) 

Southeast quarter of Section six ( 6) 

Entire Section eight ( 8) 

Entire Section nine ( 9) 

Entire Section ten (10) 

Entire Section eleven (11) 

Entire Section twelve (12) 

Entire Section thirteen (13) 

Entire Section fourteen (14) 

Entire Section fifteen (15) 

East half of Section seventeen (17) 

Northeast quarter of Section eighteen. . , . (18) 



TRUST DEEDS 117 

Lots one (1) and two (2) of Section 

eighteen (18) 

East half of northwest quarter of Section 

eighteen (18) 

Lots three (3) and four (4) of Section 

eighteen (18) 

East half of southwest quarter of Section 

eighteen (18) 

Southeast quarter of Section eighteen (18)* 

Northeast quarter of Section twenty (20) 

North half of northwest quarter of Section 

twenty (20) 

East half of northeast quarter of Section 

twenty-one (21) 

Northwest quarter of Section twenty-one. . (21) 
North half of southwest quarter of Section 

twenty-one (21) 

Southeast quarter of southwest quarter of 

Section twenty-one (21) 

East half of southeast quarter of Section 

twenty-one (21) 

North half of northeast quarter of Section 

twenty-two (22) 

North half of Section twenty-three (23) 

Northwest quarter of Section twenty-four. (24) 
West half of southeast quarter of Section 

twenty-five (25) 

Southeast quarter of southeast quarter of 

Section twenty-five (25) 

Southwest quarter of northeast quarter of 

Section twenty-seven (27) 



118 TIMBER BONDS 

North half of northwest quarter of Section 

twenty-seven . (27) 

Southeast quarter of northwest quarter of 

Section twenty-seven (27) 

Southwest quarter of southwest quarter of 

Section twenty-seven (27) 

Southwest quarter of southeast quarter of 

Section twenty-seven . . (27) 

Southwest quarter of northeast quarter of 

Section twenty-eight (28) 

South half of northwest quarter of Section 

twenty-eight (28) 

South half of Section twenty-eight (28) 

Northeast quarter of Section thirty (30) 

Lots one (1) and two (2) of Section thirty. (30) 
East half of northwest quarter of Section 

thirty (30) 

Lots three (3) and four (4) of Section 

thirty (30) 

East half of southwest quarter of Section 

thirty (30) 

Southeast quarter of Section thirty (30) 

North half of northeast quarter of Section 

thirty-three (33) 

West half of northeast quarter of Section 

thirty-four (34) 

Northwest quarter of Section thirty-four. (34) 
North half of northeast quarter of Section 

thirty-five (35) 

North half of northwest quarter of Section 

thirty-five (35) 



TRUST DEEDS 119 

All of the lands in this clause described ly- 
ing, being and situate in Linn County, Oregon ; 

Together with the buildings, machinery, rail- 
road tracks, cars, and locomotives now or here- 
after placed upon said premises in any of the 
said eleven clauses described, or upon any por- 
tion thereof. 

To have and to hold all and singular the 
above described property and rights, together 
with all the rights, title and interest thereunto 
belonging, and all the privileges and appur- 
tenances thereunto appertaining, together with 
all other property which by the terms hereof 
may become subject to this instrument, unto 
the said Union Trust Company and the said 
Frederick H. Eawson, Trustees, their suc- 
cessors in trust, and their assigns in fee simple 
forever. And the parties of the first and sec- 
ond parts, Grantors herein, covenant that they 
are respectively seized and possessed of the 
property above described and conveyed by them 
respectively; that the same is unencumbered 
and that they have a good right to convey it; 
and they respectively warrant to forever de- 
fend the title thereto unto the said Trustees, 
their successors and assigns, against the lawful 
claims of all persons whomsoever. 

In trust nevertheless for the purpose of se- 
curing the prompt and punctual payment of all 
and every of the bonds above described and of 
the interest coupons thereto attached, without 
preference or priority of one bond over an- 



120 TIMBER BONDS 

other, or of bonds over coupons, or of coupons 
over bonds, with the same effect as if all of said 
bonds matured upon the same date, and regard- 
less of the date or time of the issue or negotia- 
tion thereof; and subject to the following pro- 
visions, restrictions and conditions, to wit : 

AETICLE I. 

All of the bonds issued and certified here- 
under shall stand upon equality without re- 
gard to date of issue, certification or delivery. 
Only such bonds as shall bear thereon endorsed 
the certificate of the Corporation Trustee or 
its successor hereunder, by it duly executed, 
shall be valid or obligatory for any purpose or 
shall be secured by this instrument or entitled 
to any lien or benefit hereunder, and every such 
certificate of said Corporation Trustee upon 
any bond executed in behalf of the Company 
shall be the only and conclusive evidence that 
the bond so certified has been duly issued here- 
under and is entitled to the benefit of the trust 
hereby created and no holder of any bond is- 
sued hereunder which shall be so certified by 
said Corporation Trustee shall be under a duty 
to ascertain whether the same shall have been 
duly issued, certified and delivered, according 
to the provisions hereof. 

The entire issue of said bonds shall be ex- 
ecuted by the Company and at once certified 
and delivered by said Union Trust Company to 



TRUST DEEDS 121 

the President of the Company or to such per- 
son or persons as the Board of Directors of 
the Company by its resolution may designate. 

Upon certifying or delivering any bond under 
this mortgage or deed of trust all coupons 
thereon then matured shall be detached and 
cancelled by the Corporation Trustee and by 
the Corporation Trustee delivered to the Com- 
pany. 

In case the officers who shall have signed and 
sealed any of the bonds aforesaid shall cease to 
be such officers of the Company before the 
bonds so signed and sealed shall have been 
actually certified and delivered by the Corpora- 
tion Trustee, or issued, such bonds may never- 
theless be issued, certified and delivered as 
though the persons who had signed and sealed 
such bonds had not ceased to be officers of said 
Company. 

Interest coupons shall be authenticated by 
the engraved fac- simile signature of the present 
Treasurer of the Company, and the Company 
may adopt and use said coupons, notwithstand- 
ing the fact that the present Treasurer may 
have ceased to hold such office at the time when 
said bonds, or some portion thereof, shall be 
actually certified and delivered. 

The Trustee shall not be bound to see to the 
application, use or disposition of any of the 
bonds secured hereby, or of the proceeds 
thereof. 



122 TIMBER BONDS 

AETICLE II. 

In case any bond issued under this instru- 
ment or the coupons thereto appertaining, shall 
become mutilated, lost or destroyed, the Com- 
pany in its discretion may issue and thereupon 
the Corporation Trustee shall certify and de- 
liver a new bond of like date, tenor and amount, 
bearing the same number as the one mutilated, 
lost or destroyed, in exchange for and in place 
of and upon the cancellation of the mutilated 
bond or coupons, or in lieu of and substitution 
for the same, if lost or destroyed. In such 
case the applicant for such new or substituted 
bond shall bear the expense of furnishing the 
same. 

The Company shall not be required to issue 
nor the Corporation Trustee to certify a new 
bond in lieu of any bond alleged to have been 
lost or destroyed unless the applicant for such 
new bond shall first furnish evidence of such 
loss or destruction, and indemnity against its 
subsequent presentation as an obligation of the 
Company, which evidence and indemnity shall 
be satisfactory to both the Company and the 
Corporation Trustee, in their discretion. 

AETICLE III. 

Any bond secured hereby shall pass by de- 
livery unless registered, but it may be regis- 
tered as to principal in the holder 's name on the 



TRUST DEEDS 123 

books of the Corporation Trustee, at its office 
in the City of Chicago, Illinois, such registry 
being noted on the bond by said Eegistrar, after 
which only such registered holder, or the legal 
representative of such holder, shall be entitled 
to receive the principal thereof; and no trans- 
fer shall be valid unless made on said Corpora- 
tion Trustee's books by the registered holder 
of the bond in person or by the legal repre- 
sentative of such holder and similarly noted on 
the bond ; but the bond may be discharged from 
registry by registration to bearer, after which 
it shall be transferable by delivery. It may be 
registered again, however, in the manner above 
provided. 

The registry of any bond shall not impair the 
negotiability of the coupons, but the same shall 
continue to be transferable by delivery not- 
withstanding such registration. 

ARTICLE IV. 

Linn and Lane Timber Company agrees and 
covenants that it will duly and punctually pay, 
or cause to be paid, to every holder of any bond 
issued hereunder, and secured hereby, the prin- 
cipal and interest accrued thereon, all in gold 
coin of the United States of America of the 
standard of weight and fineness existing on the 
sixth day of June, 1910, notwithstanding any 
law which may now or hereafter make any- 
thing else a legal tender in payment of debts, 



124 TIMBER BONDS 

at the dates and place, and in the manner men- 
tioned in said bonds or in .the coupons there- 
to appertaining, according to the trne intent 
and meaning thereof, and without deduction 
from either the principal or interest for any 
tax, or taxes, or assessments, or other govern- 
mental charges which may be imposed thereon, 
or which the Company may be required or per- 
mitted to pay or to deduct or retain therefrom 
under or by reason of any present or future 
law of the United States, or of any state, county 
or municipality thereunder. 

However, the interest on said bonds shall be 
payable only upon the presentation and sur- 
render of the respective coupons annexed to 
said bonds, as such coupons respectively mature 
and when and as paid all the coupons shall 
forthwith be cancelled and delivered to the 
Company. 

And the Company agrees promptly, and in 
time to prevent any sale or forfeiture of the 
mortgaged premises or any part of the same 
on account thereof, whether hereby conveyed 
by it, or by the Lumber and Manufacturing 
Company, to pay, or cause to be paid, all taxes, 
assessments and governmental charges which 
shall from time to time be legally imposed, as- 
sessed or levied, upon or against the property 
hereby conveyed, or upon any part thereof, 
whether hereby conveyed by the Company or 
by the Lumber and Manufacturing Company, or 
upon the profits or income thereof; and to pay 



TRUST DEEDS 125 

or cause to be paid any judgment or other en- 
cumbrance, the lien whereof might be held su- 
perior to the lien of these presents, upon the 
property hereby conveyed by either of the 
Grantors, or upon any part thereof, so that the 
priority of these presents shall at all times be 
fully maintained and preserved; provided, 
however, that the Company may, with the con- 
sent of the Corporation Trustee thereto first 
had and obtained in writing, resist in any legal 
way the payment of any tax, assessment or 
charge upon said property hereby conveyed, or 
any part thereof, which the Company may deem 
unjust, illegal or unauthorized. And the Com- 
pany agrees to do on demand of the said Trus- 
tee, or its successors, all acts necessary or 
proper to keep valid the lien hereby created or 
intended to be created; and at any future time 
and as often as it may be necessary to execute 
or cause to be executed on demand of said Trus- 
tee, or its successors, all such other and addi- 
tional deeds, mortgages, or other instruments 
in writing, in due form and effect, as may be 
proper to the better carrying out of the true 
intent and meaning of these presents. 

And the Company further covenants and 
agrees that it will not cut nor permit to be cut 
any timber from the premises hereunder mort- 
gaged, nor any timber hereunder mortgaged, 
nor extract anything from or deaden the said 
timber, or any portion thereof, nor permit the 
same to be done, nor permit any waste or other 



126 TIMBER BONDS 

change in the property hereby mortgaged, ex- 
cept as is herein otherwise expressly provided, 
but that it will diligently preserve and protect 
the same. 

In case the Company shall fail to promptly 
pay or cause to be paid any tax, assessment or 
other charge as provided for herein, either of 
the Trustees may pay the same (but shall not 
be under any obligation whatsoever so to do), 
in which event such Trustee shall be subro- 
gated, either with or without an act, writing or 
other instrument to that effect, to the rights 
and demands of the State, County, City, Town 
or other municipality, as the case may be ; and 
in addition thereto the amount thus expended, 
together with interest thereon at the rate of six 
per centum per annum shall be a charge on the 
property hereby conveyed prior to the lien of 
the bonds hereby secured. 

C. A. Smith Lumber and Manufacturing 
Company covenants that its lumber mill plant, 
equipment and appurtenances, and its logging 
apparatus and plant will be kept in repair and 
maintained in good working order and condi- 
tion, and if worn out or injured will be replaced 
by other property suitable to the business for 
which it is now used, and of at least equal value, 
and that such lumber mill plant, equipment and 
appurtenances, and such logging apparatus and 
plant shall not be removed from the mortgaged 
premises without the consent of the Trustees 
hereunder. 



TRUST DEEDS 127 

ARTICLE V. 

The Company agrees that it will, at all times 
during the existence of any of the indebtedness 
secured hereby, keep or cause to be kept in- 
sured by the Grantor owning the same, against 
loss by fire or cyclone, all of the buildings now 
on any portion of the property hereby mort- 
gaged or which may hereafter be erected there- 
on, and all the machinery, equipment and ap- 
paratus used or provided for use in connection 
with said lumber mill plant and equipment that 
are usually insured by companies or persons 
engaged in like business and in the same man- 
ner, and to the same extent (but in an amount 
not less than Seventy-five Thousand (75,000) 
Dollars), and shall cause such insurance to be 
made payable in case of loss to the Trustees 
hereunder or their successors, by proper stipu- 
lations in the face of the policies therefor. 

In case of loss or damage to any property 
covered by such insurance policies the Trus- 
tees may allow the amount of the insurance 
money received from said policies on account 
of such loss to be applied toward the replace- 
ment of, or addition to the property destroyed 
or damaged, if the Company shall in writing so 
request. In such case the Trustees, shall from 
time to time pay to the Company or to the Lum- 
ber and Manufacturing Company as such writ- 
ten request may indicate, any or all of the pro- 
ceeds of such insurance money so collected or 



128 TIMBER BONDS 

received; but no such payment shall be made 
until and unless the Trustees shall first be fur- 
nished with a statement or statements verified 
by the affidavits of the President or Vice-Presi- 
dent of the Company or of the Lumber and 
Manufacturing Company as the case may be, 
showing that such Company has theretofore 
made actual expenditures to an amount equal 
to or greater than the amount of insurance 
money sought to be thus obtained from the Trus- 
tees, in or about the repair or the replacement 
of the property damaged or destroyed for or 
on account of which such insurance money was 
collected; and all such repairs or replacements 
shall be and become subject to the lien of this 
instrument in like manner and to the same ex- 
tent as was the property damaged or destroyed. 
The Trustees shall not be compelled to act upon 
such affidavits, but should they deem proper 
they may before making such payments of in- 
surance money make or cause to be made such 
further investigation with reference to such ex- 
penditures, repairs or replacements, as they 
see fit. 

But if within ninety days from the time of 
the collection of the proceeds of any such in- 
surance policy the Company shall not in writ- 
ing request the Trustees to hold such proceeds 
for the purpose of applying the same on such 
repairs or replacements, then the said sums so 
collected shall be credited to and become a part 
of the fund held by the Corporation Trustee 



TRUST DEEDS 129 

for the purpose of retiring bonds hereby se- 
cured, as is provided in Article VII and other 
Articles hereof. 

Likewise shall all surplus monies be so ap- 
plied in case the cost of repairs or replace- 
ments shall not equal the total amount of the 
proceeds collected from such insurance policies. 

In case of loss covered by any policy of in- 
surance, any appraisement or adjustment of 
such loss, and settlement and payment of in- 
demnity therefor, which may be agreed upon 
between the Grantors or either of them and 
any insurance company, may be consented to 
and accepted by the Trustees. 

The Trustees shall be in no way liable or re- 
sponsible for a failure to collect any insurance 
money that may become due them under the 
provisions hereof, or of the policies above re- 
ferred to, but only for such amounts as may 
come into their hands as the proceeds of such 
policies. 

The Company further covenants and agrees 
that until all and singular the bonds and cou- 
pons hereby secured shall be paid and dis- 
charged and until this instrument is duly re- 
leased as herein provided, it shall take, or cause 
to be taken, all reasonable precaution to pre- 
vent damage to, or destruction by fire of the 
timber hereby conveyed, including the timber 
upon the lands hereby conveyed, and to that 
end it covenants and agrees during the period 
last aforesaid, from time to time, to institute 



130 TIMBER BONDS 

and maintain such system of fire protection 
either on its own account or jointly or in as- 
sociation with other land owners as shall from 
time to time be prescribed by the Trustees with 
the approval of Lyon, Gary & Company, an 
Illinois Corporation, provided, however, that 
the Company shall not be obligated to observe 
and perform the requirements so prescribed by 
said Trustees, approved as aforesaid, to an 
extent which will involve in any one year the 
expenditure by the Company of an amount of 
money in excess of three thousand dollars. 

ARTICLE VI. 

In order to prevent any accumulation of 
bonds or coupons after their maturity, the 
Company covenants and agrees that it will not 
directly or indirectly extend or assent to the 
extension of the time for payment of any of the 
bonds or of any coupons of any of the bonds 
secured hereby, by purchase or funding of 
such bonds or coupons or by any other ar- 
rangement. In case the time for payment of 
any such bond or coupon shall be so extended, 
whether or not such extension be with or by 
the consent of the Company, such bond or cou- 
pon shall not be entitled, in case of any default 
hereunder, to the benefit or security of this 
mortgage, except subject to the prior payment 
in full of the principal of all bonds issued here- 
under then outstanding, and of all matured 



TRUST DEEDS 131 

coupons, and of all other accrued interest on 
such bonds the payment of which has not been 
so extended. 

ARTICLE VII. 

The number first having been selected by lot 
by the Corporation Trustee, any outstanding 
bond issued hereunder may be redeemed and 
paid by the Company at the place of payment 
of said bonds on any interest payment date, 
upon payment of the principal of said bond and 
interest due thereon at the date of such re- 
demption, together with a premium of two and 
one-half (2%) per centum on the principal 
thereof. Such selections shall in every case be 
made from the bonds first maturing, no bond 
being subject to selection for redemption until 
all bonds of prior maturities have either been 
paid or selected for redemption. In case of an 
election to redeem any of the bonds issued here- 
under before maturity and a selection pursuant 
to such election either the Company or the Cor- 
poration Trustee shall publish a notice of such 
election to redeem and the selection thereunder 
once a week for four successive weeks (the first 
of such publications to be not less than ninety 
days previous to the date of redemption) in 
some newspaper of general circulation pub- 
lished in the City of Chicago, State of Illinois, 
which notice shall state the numbers of the 
bonds selected as above to be redeemed, and the 
date when the bonds so selected shall be due 



132 TIMBER BONDS 

and payable under such redemption. All bonds 
so designated for redemption shall become due 
and payable on the date given in such published 
notice, and shall from such date cease to draw 
interest, provided that at or prior to such date 
there shall have been deposited with the Cor- 
poration Trustee the proper amount of money 
for the redemption of said bonds so designated 
for redemption. Upon the deposit with the 
Corporation Trustee of the proper amount of 
money for the redemption of any bond or bonds 
so designated, the Company and the Trustees 
may be privileged to consider such bond or 
bonds as paid and cancelled, and the Company 
shall be under no further obligation to the 
holder or holders of such bond or bonds; nor 
shall the Trustee be further liable or under 
obligation to such holder or holders except for 
the moneys deposited in redemption of such 
bonds, to be paid without interest upon their 
surrender. 

ARTICLE VIII. 

Subject to the right of suspension or revoca- 
tion as provided in Article XII hereof and so 
long as the Company shall not be in default 
in the payment of any of the bonds or interest 
coupons secured hereby, or in the payment of 
taxes or other governmental assessments or 
charges as provided in this mortgage, or in the 
performance of any of the other covenants 
herein contained on its part to be performed, 



TRUST DEEDS 133 

the Trustees shall and are hereby authorized 
to release unto the Company and to permit the 
Company to cut and remove free from the lien 
of this mortgage, or deed of trust, any of the 
timber conveyed hereby, or the timber on any 
or all of the lands conveyed hereby, which the 
Company may select, when the Company shall 
have first paid to the Corporation Trustee Two 
Dollars and fifty cents ($2.50) per thousand 
feet on the estimated stumpage for the timber 
on each description or group of descriptions 
which the Company then desires the right to 
cut, as the estimated stumpage thereon is shown 
on a list called "Estimated Stumpage List" 
signed in quadruplicate by the Grantors herein, 
by the Corporation Trustee and by said Lyon, 
Gary & Company; and one original of which 
list is deposited with each of the signatories 
thereto. Consideration for the privilege of ob- 
taining such releases may be given by the Com- 
pany in any of the following three ways : 

(a) By payment in cash. 

(b) By delivery to the Trustees of any 
of the bonds hereby secured and then out- 
standing, which it may have acquired; in 
which case, for the purpose of obtaining re- 
leases the amount of the principal of such 
bonds so delivered shall be treated the 
same as if a like amount had been paid to 
the Trustees in cash. 

(c) By the payment of any of the bonds 
secured hereby, — treating only the amount 



134 TIMBER BONDS 

of principal paid as a consideration for re- 
leases. 

In the event that the Company shall acquire 
and deliver bonds to the Trustees, as provided 
in Paragraph (b) above, the Trustees shall 
cancel the said bonds and coupons attached 
thereto so delivered and forming the considera- 
tion or part of the consideration for such re- 
leases. 

In this latter case the Trustees shall keep 
a list of the numbers of all Bonds so used for 
the purpose of securing releases of portions 
of the timber and shall indicate on each such 
Bond that it has been so used, — together with 
the date of such use. 

All money received by the Corporation Trus- 
tee under this Article shall be used for the re- 
tirement of Bonds secured hereby as provided 
in Article VII hereof. 

The Company may enter upon any land from 
which the timber has been so released and may 
conduct logging operations thereon as it may 
desire ; and the Company may also, at its pleas- 
ure, remove any logging railroad or other prop- 
erty which it may place on such land. 

The Company covenants that it will keep 
proper books of record and account showing 
full, true and perfect entries of all dealings or 
transactions of or in relation to the plants, 
properties, business and affairs of the Com- 
pany, and which shall at all times be open to 
the inspection of the Trustees or either of them, 



TRUST DEEDS 135 

and of Lyon, Gary & Company, or of their re- 
spective successors hereunder; and that when- 
ever requested either by the Trustees or by 
Lyon, Gary & Company, or their respective 
successors, the Company shall and will furnish 
complete statements showing its financial con- 
dition, together with such other information 
bearing on the security of the bonds as may be 
requested. 

ARTICLE IX. 

The Company covenants and agrees that in 
all cases where timber is hereby conveyed, 
without the fee simple title to the land upon 
which it stands being also conveyed, the Com- 
pany will and shall take and pay to the Cor- 
poration Trustee for the said timber (or pay 
for the same without taking it) not less than 
two years before the expiration of the time for 
removal thereof, as stated herein, two dollars 
and fifty cents ($2.50) per thousand feet on the 
estimated amount (stumpage) of such timber 
as the same is shown by the "Estimated Stump- 
age List ' ' referred to in Article VIII hereof. 

In case the Company procures an extension 
of the time within which the said timber or any 
portion thereof may be removed, in such form 
that this right will in their opinion enure to 
the benefit of the Trustees hereunder, their 
successors and assigns, the obligation of the 
Company to take and pay for said timber, the 
time for removal of which may be so extended, 



136 TIMBER BONDS 

or to pay for it without taking, shall be ac- 
cordingly extended; provided, however, that 
the time for removal shall never become less 
than two years without the Company paying 
the Corporation Trustee therefor. 

ARTICLE X. 

In case before the payment in full of all the 
bonds hereby secured with interest thereon, 
any timber hereby mortgaged or the timber on 
any portion of the premises hereby mortgaged 
(except such as may have been theretofore re- 
leased under the provisions of this instrument) 
shall be injured or damaged by the action of 
fire, or by wind or the elements to an extent 
sufficient in the opinion of the Trustees or of 
Lyon, Gary & Company, to appreciably affect 
the value of the same as security for the pay- 
ment of the bonds and coupons then outstand- 
ing, the Company shall within sixty days after 
the extent of such loss shall be determined, pay 
to the Union Trust Company for the benefit of 
the bondholders the sum of One (1) Dollar per 
thousand feet stumpage on the timber so in- 
jured or damaged, the land descriptions on 
which the timber has been injured or damaged 
being ascertained by investigation under direc- 
tion of the Trustees, and the amount of timber 
thereon, on which the payments of One (1) 
Dollar per thousand feet shall be made as above 
expressed, being determined by the estimates 
shown on said "Estimated Stumpage List." 



TRUST DEEDS 137 

The salvage of any timber so injured or dam- 
aged, and on account of which damage pay- 
ments are made as above provided, shall re- 
main subject to the terms of this instrument 
notwithstanding such payments ; but should the 
Company desire to cut and remove such timber, 
free from the lien or encumbrance of this in- 
strument, it shall have the right to do so upon 
paying the Union Trust Company for the bene- 
fit of the bondholders, the additional sum of 
one dollar and fifty cents ($1.50) per thousand 
feet stumpage for any such damaged timber. 

ARTICLE XI. 

All sums of money paid to the Trustees by 
the Company for the release of any portion of 
the timber hereby mortgaged, in accordance 
with any Article hereof, and all other sums 
which may come into the hands of the Trus- 
tees for the benefit of the holders of the bonds 
issued hereunder, shall be applied by the Trus- 
tees from time to time to the purchase of out- 
standing bonds issued hereunder at such price 
as may be agreed upon by the Company and the 
Trustees. If none of the bonds secured hereby 
can be so purchased the Trustees in the man- 
ner provided in Article VII hereof, shall by 
lot select bonds to be redeemed to an amount 
sufficient to approximately exhaust the funds 
so held by them; after which the bonds so se- 
lected shall in all things be subject to the 



138 TIMBER BONDS 

provisions of Article VII hereof and redeema- 
ble in the manner therein provided; such re- 
demption shall be made on the first interest 
payment date occurring ninety days or more 
after the receipt of such funds by the Trustees. 
No bond which may be paid, bought or re- 
deemed under this or any other Article hereof 
shall be reissued, but the same shall be can- 
celled by the Trustees and delivered to the 
Company for preservation. 

AETICLE XII. 

While the Company shall not be in default 
in the performance of any of the covenants 
in this instrument contained it may from time 
to time, subject to the conditions hereinafter 
stated, sell, free from the lien of this instru- 
ment, (a) the property by it mortgaged here- 
under, lying in Lane and Linn Counties, as a 
whole but not otherwise, upon the payment in 
cash of a sum equalling One Dollar and fifty 
cents ($1.50) per thousand ft. on the estimated 
stumpage on said lands as shown by the " Es- 
timated Stumpage List" referred to in Arti- 
cle VIII hereof; (b) all or any part in parcels 
of forty acres or more of the property by it 
mortgaged hereunder, lying in Coos, Curry, 
Douglas and Lincoln Counties, upon the pay- 
ment in cash of such sum or sums of money 
as the Company, the Trustees and Lyon, Gary 
& Company may agree upon which shall not 



TRUST DEEDS 139 

exceed Two Dollars and fifty cents ($2.50) per 
thousand feet stumpage based upon the esti- 
mate of the stumpage on said lands as shown 
in the list referred to above. 

Either the Trustees or Lyon, Gary & Compa- 
ny may, in their discretion, cause such investi- 
gation to be made of the desirability of per- 
mitting or approving of any proposed sale or 
sales of the property or any part thereof, in 
said last named four counties, in case a sale 
is proposed at less than the maximum price 
basis above in this Article provided for, as 
they may see fit, and the expense of such in- 
vestigation shall be borne by the Company. 
The Trustees shall execute such instruments as 
may be necessary to release from the lien of 
this instrument any property sold, according 
to the provisions of this Article. 

And always further provided, however, that 
the right of the Company to sell the land or any 
portion of the same, as is in this Article pro- 
vided, and the right of the Company to sell or 
procure the release of timber, in any quantities 
whatsoever, as provided in other articles here- 
of, may be suspended or revoked by the Trus- 
tees with the concurrence of Lyon, Gary & 
Company, in case of litigation arising over or 
affecting or involving questions affecting or 
which may affect the title to as much as 2,000 
acres of land embraced herein ; or to the lumber 
mill plant hereby mortgaged; said suspension 
or revocation being optional with the Trustees 



140 TIMBER BONDS 

and Lyon, Gary & Company, and if the right 
is exercised, the same shall remain in effect 
until some satisfactory settlement of such liti- 
gation, or until other arrangement is made 
with reference thereto, which is satisfactory to 
them in their discretion. 

The proceeds of the sale of any portion of 
the property covered hereby (that is the gross 
amount of sale less reasonable commissions 
and expense connected with such sale) shall be 
paid and turned over to the Corporation Trus- 
tee, and shall be treated by the Trustees in like 
manner and used by them for the same purpose 
as are the payments provided for in Articles 
VII and XI hereof. 

Neither the Trustees nor Lyon, Gary & Com- 
pany, shall be under any liability for anything 
done (or omitted to be done) by them respect- 
ively in good faith hereunder. 

ARTICLE XIII. 

All moneys which may be received as com- 
pensation for any property or right of the 
Company which may be taken by the exercise 
of the power of eminent domain or expropria- 
tion shall be paid to the Trustees and used for 
the retirement of bonds secured herein in ac- 
cordance with Article VII hereof, — excepting 
that if such condemnation or expropriation 
proceedings shall be defended by the Company, 
its reasonable expenses and attorney's fees in 



TRUST DEEDS 141 

making such defense shall be deducted from 
any award and only the surplus paid over to 
the Trustees as herein provided. 

But the Company shall not be entitled to have 
the release of any property covered hereby on 
account of bonds purchased with money coming 
through condemnation or expropriation pro- 
ceedings. 

ARTICLE XIV. 

If the Company or its successors or assigns, 
shall well and truly pay or cause to be paid to 
the holders thereof the principal of all bonds se- 
cured hereby, or intended so to be, and the in- 
terest moneys to become due thereon respect- 
ively, at the time and in the manner specified 
in the said bonds and coupons, without deduc- 
tion for United States, State, County, Muni- 
cipal or other tax or taxes, or assessments, or 
other governmental charges which the Compa- 
ny may be required or permitted to pay or re- 
tain therefrom by any present or future law, 
according to the true tenor and effect thereof, 
or if at any time the Company shall acquire 
and cancel all of the bonds and interest coupons 
secured hereby, and pay off and discharge all 
obligations incurred hereunder including the 
payment of the reasonable charges and ex- 
penses of the Trustees, then these presents and 
the trusts hereby created, and all the estate, 
right, title and interest hereby vested in the 
said Trustees, their successors and assigns, in 



142 TIMBER BONDS 

the property hereby conveyed shall cease and 
determine, as fully as if this mortgage had nev- 
er been executed; and in that case the said 
Trustees or their successors in the trust, on 
demand of the Company and the cancellation 
of the bonds and coupons hereby secured, shall 
execute and deliver to each of the Grantors 
herein all such instruments as may be neces- 
sary to discharge and cancel this mortgage as 
to the premises which by the said Grantors are 
hereby conveyed. 

AETICLE XV. 

The Trustees shall have the right at any time 
in their discretion, but not of tener than once in 
six (6) months, to cause an inspection of the 
lands and timber herein conveyed to see wheth- 
er the property mortgaged hereunder has suf- 
fered any damage, or been trespassed upon, or 
whether there has been any unauthorized use of 
the timber or of the premises hereby conveyed 
or of the timber thereon; and the expense of 
any such investigation shall be borne and paid 
by the Company, but the Trustees shall not be 
required to have such an examination made un- 
less upon the written request of the holder or 
holders of some one or more of the bonds se- 
cured hereby and then outstanding, together 
with the written concurrence of Lyon, Gary & 
Company thereto, and unless such bondholder 
or bondholders first advance or pay to the 
Trustees the estimated cost of such inspection. 



TRUST DEEDS 143 

ARTICLE XVI. 

If default shall be made in the payment of 
the principal of any said bonds when the same 
become due or in the payment of any interest 
money mentioned in said bonds or coupons, or 
any or either of them, when the same becomes 
due, or if the Company shall cut timber situ- 
ate upon the mortgaged premises or any part 
thereof or cut any of the timber mortgaged 
hereunder, or suffer any of the same to be cut, 
otherwise than is herein provided, or shall fail 
to perform any other of the covenants in this 
mortgage or deed of trust contained, on its 
part to be performed, or to cause to be per- 
formed, and if such default shall continue f 01 
a period of sixty days, the Trustees may, and 
if thereunto requested in writing by the holders 
of ten (10) per centum in interest (but not less 
than $25,000.00) of the said bonds then out- 
standing shall declare the principal of all the 
bonds hereby secured then outstanding to be, 
and same shall thereupon become, immediately 
due and payable, anything contained in said 
bonds or herein to the contrary notwithstand- 
ing. 

ARTICLE XVII. 

If default shall be made in the payment of 
any bond or coupons when the same become 
due (whether such default shall have continued 
for the period of sixty days or not), or if de- 



144 TIMBER BONDS 

fault be made in the payment of taxes, as is 
herein provided, and such default shall contin- 
ue for the period of sixty days, the Trustees 
may, and upon the request in writing of the 
holders of ten (10) per centum in interest (but 
not less than $25,000.00) of the bonds and cou- 
pons then outstanding, and upon being indem- 
nified to their satisfaction for any expenses 
and liabilities which they may incur, shall, as 
the agents and attorneys in fact of the Grant- 
ors herein enter into and take full possession 
of the lands and all other property hereby 
mortgaged (except such as may have been 
theretofore released under the provisions of 
this instrument) and hold, use, manage, main- 
tain and operate the same; collect and receive 
all moneys and revenues arising from such 
management and operations, and apply the 
same, first to the expenses of such operation, 
including reasonable compensation for their 
own services and for the services of their coun- 
sel, attorneys, agents and servants; second, to 
the maintenance, management and operation of 
the property, including the payment of taxes, 
assessments and other governmental charges, 
and third, to the payment pro rata of any 
amount, principal or interest, that may be due 
and in default upon said bonds, together with 
interest on overdue installments of interest, 
but not to the payment of any bond or coupon 
the time for payment of which may have been 
extended. In case all of the said payments 



TRUST DEEDS 145 

shall be made in full, the Trustees after making 
such provision as they may deem advisable 
for the next semi-annual installment of inter- 
est and principal, shall restore to the respect- 
ive Grantors the possession of the premises by 
them hereby conveyed. This power of entry 
may be exercised as often as occasion therefor 
shall arise pending the trust; and this power 
of attorney is and shall be irrevocable. 

ARTICLE XVIII. 

In case (1) default shall be made in the due 
and punctual payment of any interest on any 
bond hereby secured, and any such default 
shall continue for a period of sixty days ; or in 
case (2) default shall be made in the due and 
punctual payment of the principal of any bond 
hereby secured; or in case (3) the Company 
shall cut timber situate upon said mortgaged 
premises or any timber mortgaged hereunder 
or suffer the same to be cut otherwise than is 
herein provided and such default shall con- 
tinue for a period of sixty days; or in case 
(4) default shall be made in the due observance 
or performance of any other covenant, con- 
dition or agreement herein required to be kept 
or performed by the Company and such default 
shall continue for a period of sixty days, then 
and in every such case the Trustees, or either 
of them, (a) may enter upon and take posses- 
sion of the mortgaged property, or any part 



146 TIMBER BONDS 

thereof, collect and receive all rents, issues, in- 
come and profits therefrom and operate . and 
conduct the business of either or both of the 
grantors to the same extent and in the same 
manner as the grantors might do; (b) may- 
cause this mortgage to be foreclosed and the 
mortgaged property, or any part thereof, to 
be sold; (c) may proceed to protect and enforce 
the rights of the Trustees and the bondholders 
hereunder whether for specific performance of 
any covenant, condition or agreement herein 
contained or in aid of the execution of any 
power herein granted or for the enforcement 
of such other appropriate legal or equitable 
remedy as may, in the opinion of counsel, be 
most effectual to protect and enforce the rights 
aforesaid; (d) shall be entitled as of right with- 
out notice to the appointment of a receiver of 
the mortgaged property, or any part thereof, 
and each of the grantors does hereby irrevoc- 
ably consent to such appointment. 

AETICLE XIX. 

The Grantors herein covenant that they will 
not apply for or avail themselves of any in- 
junction or stay of proceedings, or plead, or in 
any way take advantage of any valuation law, 
appraisement law, or any other law, whether 
now in force or which may hereafter be enact- 
ed, which may in any way alter, impair, or im- 
pede the rights or remedies of the holders of 



TRUST DEEDS 147 

the bonds issued hereunder, or of the Trustees 
as herein provided, or which shall affect or 
change the time, place, means or mcrde of per- 
fecting or enforcing such rights or remedies; 
and they hereby expressly waive all benefit and 
advantage of any and all such laws. 

ARTICLE XX. 

Upon any foreclosure sale of the property 
hereby mortgaged, or any part thereof, the 
purchaser in making payment therefor, shall 
be entitled, after paying in cash so much as 
shall be necessary to cover the cost and ex- 
penses of the sale and of the proceedings in- 
cident thereto, and all other charges that may 
be decreed to be paid in cash, to appropriate 
and use toward the payment of the remainder 
of the purchase price any of the bonds or cou- 
pons issued hereunder, and entitled to partici- 
pate in the proceeds of such sale, reckoning 
each bond or coupon so appropriated and used 
at such sum as shall be payable thereon out 
of the net proceeds of the sale ; and proper re- 
ceipts shall thereupon be given to the holders 
of such bonds or coupons for the amount so 
payable thereon, and the bonds and coupons, if 
the net proceeds of the sale shall be sufficient 
to pay them in full, shall be delivered up to the 
person making the sale under the decree of the 
court for cancellation ; or if the proceeds of the 
sale shall not be sufficient to pay such bonds 



148 TIMBER BONDS 

or coupons in full, then proper endorsement 
shall be made thereon of the amount so paid 
and they shall then be returned to the holders. 



AETICLE XXL 

Upon any foreclosure sale of property here- 
by mortgaged the property shall be sold either 
as a whole or in parcels at the option of the 
Trustees conducting the foreclosure proceed- 
ings; and if in parcels the same shall be di- 
vided as shall be considered for the best inter- 
ests of the bondholders by the said Lyon, Gary 
& Company, as may be evidenced in writing ad- 
dressed to the Trustees or to the Court; or in 
case of such foreclosure sale the property may 
at the option of the Trustees be offered first 
by parcels designated as above, and then as a 
whole, that offer producing the highest price for 
the entire property to prevail — any law statu- 
tory or otherwise to the contrary notwithstand- 
ing. And the Grantors herein hereby expressly 
waive the right to require any such sale to be 
made by the acre, or in parcels, or the right to 
select such parcels. 

In case any foreclosure sale of the premises 
hereby mortgaged should fail to realize suffi- 
cient funds for the payment in full of the en- 
tire debt hereby secured, including all author- 
ized expenses, court costs, attorneys' fees, et 
cetera, the balance remaining unpaid shall be 
and remain a valid, subsisting and enforceable 



TRUST DEEDS 149 

obligation of and against the Company, and a 
deficiency judgment against the Company may 
be taken thereon, and the Court may direct in 
the decree of foreclosure of this mortgage that 
any balance which may remain unsatisfied after 
the sale of the mortgaged premises, and the ap- 
plication of the proceeds of said sale toward the 
payment of the mortgage indebtedness, togeth- 
er with costs and interests, shall be satisfied 
from any other property of the Company. 

In case the proceeds of foreclosure sale of 
the premises hereby mortgaged should be insuf- 
ficient to satisfy in full the mortgage debt here- 
by secured and then existing, together with 
costs, attorneys' fees and expenses of foreclos- 
ure and sale, then and in such event the Trus- 
tees herein named, or any successor to such 
Trustees, are hereby authorized to commence 
suit in any court of record (State or Federal) 
in the State of Illinois or in any court of record 
having jurisdiction of the amount involved, in 
any other State of the United States, against 
the Company to recover judgment for the full 
amount of such deficiency with interest thereon 
at the rate of six per centum per annum from 
the date of such foreclosure sale, together with 
attorneys' fees and costs of court, and the then 
President of the said Lyon, Gary & Company, 
is hereby irrevocably appointed the attorney 
in fact of the Company to enter the appearance 
of the Company in said suit, and to confess 
judgment in said suit in favor of the plaintiff 



150 TIMBER BONDS 

therein and against the Company for the full 
amount of said deficiency, with interest, court 
costs, and attorneys' fees, as aforesaid, and in 
any suit upon such judgment or upon any re- 
newal thereof, to recover the amount of such 
judgment or the renewal of such judgment, 
to likewise enter the appearance of the 
Company in any such suit and to confess 
judgment thereon for the amount of said judg- 
ment or renewal thereof with interest thereon 
at the rate aforesaid with costs of court, and 
it is agreed that this clause of this mortgage 
shall be deemed a separate and independent 
clause of this instrument, and shall be treated 
and deemed as a contract entered into between 
the parties hereto to be governed by the laws 
of the State of Illinois to the same effect as if 
this instrument had been entered into in said 
State and were to be performed there. 

AETICLE XXII. 

In case of a foreclosure of this mortgage or 
deed of trust the proceeds shall be applied : 

First, to the payment of all expenses of pro- 
tecting and enforcing this trust, including rea- 
sonable compensation to the trustees, and all 
expenses incurred by them in connection here- 
with, and including reasonable attorneys' fees 
for any service that may be rendered either in 
protecting this trust or enforcing the same. 

Second, to the payment pro rata of all the 



TRUST DEEDS 151 

bonds and interest coupons secured hereby 
without preference of bonds over coupons or 
coupons over bonds, subject however, to the 
provisions of Article VI hereof; but only cou- 
pons that have matured and the earned portion 
of those next maturing shall be entitled to par- 
ticipate in such proceeds; and, 

Third, the balance, if any there be, shall be 
paid to the Company or its order. 

AETICLE XXIII. 

No delay or omission of the Trustees, or of 
any holder of bonds hereby secured, to exer- 
cise any right of power accruing upon any de- 
fault, shall impair any such right or power, 
or shall be construed to be a waiver of any such 
default, or an acquiescence therein; and every 
such power and remedy given by this instru- 
ment to the Trustees, or to the bondholders, 
may be exercised from time to time and as 
often as may be deemed expedient, by the 
Trustees or by the bondholders. 

ARTICLE XXIV. 

Except as may be herein expressly provided 
to the contrary, no right or remedy herein con- 
ferred upon or reserved to the Trustees shall 
be or is intended to be exclusive of any other 
right or remedy, but every such right or reme- 
dy herein provided shall be cumulative, and 



162 TIMBER BONDS 

shall be in addition to every other right or 
remedy given hereunder, or now or hereafter 
existing at law or in equity or by statute ; and 
every power and remedy given by this instru- 
ment to the Trustees may be exercised from 
time to time and as often as may be deemed ex- 
pedient. No delay or omission of the Trustees 
to exercise any right or power arising from any 
default shall impair any such right or power, 
or shall be construed to be a waiver of any 
such default or an acquiescence therein. 

ARTICLE XXV. 

Every holder of any of the bonds secured 
hereby accepts the same subject to the express 
understanding and agreement that every right 
of action, whether at law or in equity, under 
this instrument, is vested exclusively in the 
Trustees, and under no circumstances shall the 
holder of any bonds or coupons, or any number 
of such holders, have any right to institute any 
action at law or any suit or proceeding in 
equity, or otherwise, under this instrument, or 
upon any bond or coupon secured hereby, for 
the purpose of enforcing any covenant or rem- 
edy herein or in said bonds or coupons con- 
tained, or to foreclose this mortgage, except in 
case of refusal on the part of the Trustees to 
comply with any duty imposed on them in re- 
spect of any such covenant of foreclosure after 
demand by the holder or holders of such bonds 



TRUST DEEDS 153 

or coupons and the production of such bonds 
or coupons by the holder thereof to the Trus- 
tees, or the furnishing by such holders of other 
evidence satisfactory to the Trustees that they 
are such holders, and the giving to the Trustees 
of indemnity satisfactory to them, securing 
them against liability by reason of the action 
requested; but no inaction by said Trustees, 
upon any such request shall be deemed a re- 
fusal until after the expiration of a reasonable 
time and not less than twenty (20) days for 
the consideration thereof by said Trustees. 

In every case in which the Trustees are au- 
thorized or require, under any provision of 
this instrument, to take any action upon the 
request of the holders of said bonds, the Trus- 
tees shall have the right to require the person 
or persons presenting such request, to furnish 
proof as to the ownership of the said bonds 
presented by him or them, by affidavit or other 
evidence satisfactory to the Trustees; and if 
such proof be so required, the said request shall 
be without effect until such proof shall be fur- 
nished. 

ARTICLE XXVI. 

So long as there shall be no default in any 
of the covenants in this instrument contained, 
the Grantors shall continue in the possession 
of all the property embraced herein, and by 
them respectively hereby conveyed to the Trus- 
tees. 



154 TIMBER BONDS 

ARTICLE XXVII. 

The Trustees herein named, or either of 
them, may resign or discharge themselves of 
and from the trust hereby created, by notice in 
writing to be given to the Company and pub- 
lished once a week for two consecutive weeks in 
a paper of general circulation published in the 
said City of Chicago, at least thirty days be- 
fore such resignation shall take effect, or such 
shorter time as the party of the first part may 
accept as sufficient notice ; but such resignation 
shall take effect immediately upon the appoint- 
ment of new Trustees herein in place of the 
Trustees resigning if such new Trustees shall 
be appointed before the time limited by such 
notice. 

The corporation of Lyon, Gary & Company 
may in like manner resign or discharge itself 
of the duty herein imposed upon it, in which 
case successors to its duties and authority shall 
be selected and appointed in like manner as 
successor trustees hereunder may be selected 
and appointed. 

ARTICLE XXVIII. 

In case the trust created hereby shall be- 
come vacant by reason of the resignation, inca- 
pacity or inability to act of the said Trustees, 
or either of them, or of any successor trustee, 
or otherwise (except as provided in the follow- 
ing Article XXIX hereof), it shall be lawful for 



TRUST DEEDS 155 

the holders of the majority in amount of the 
bonds then outstanding to appoint a successor, 
or successors by a writing by them signed, or, 
for any judge of the United States Circuit 
Court for the Ninth Judicial Circuit in default 
of such appointment, to appoint such successor, 
or successors on the application of the holders 
of not less than one-tenth in amount of the said 
bonds then outstanding, — one trustee always to 
be a private person, and the other to be a Trust 
Company, organized under the laws of the 
State of Illinois. 

And upon any such appointment being made, 
and the said trust being accepted, such suc- 
cessors or substitute Trustees shall without 
further act or deed, become vested with all and 
singular the estate, rights and powers, and 
shall perform all the duties of Trustees, in 
like manner, and with the same effect as if 
named in this instrument as Trustees. 

ARTICLE XXIX. 

The holders of a majority in amount of the 
outstanding bonds secured by this instrument, 
provided the Company shall join (or the hold- 
ers of three-quarters in amount of the bonds 
then outstanding hereunder without such 
joinder) may, by a writing under their respect- 
ive hands and seals, change the Trustees and 
appoint new Trustees, which instrument, when 
recorded in the proper offices for recording 



156 TIMBER BONDS 

deeds and mortgages in the Counties of Coos, 
Curry, Douglas, Lane, Lincoln and Linn, State 
of Oregon, (and on payment to said Trustees 
of all charges and compensation to which they 
shall at that time be entitled hereunder) shall 
ipso facto, and without any further action, sub- 
stitute such new Trustees in the place of the 
Trustees herein named, or in place of any suc- 
cessor Trustees, with all the rights, powers and 
privileges granted to the said Trustees, under 
this instrument, and no conveyance from the 
old Trustees to the said Trustees thus appoint- 
ed shall be necessary to convey the trust prem- 
ises to such new Trustees, but the old Trustees 
shall and will upon the request of such new 
Trustees, execute any conveyance necessary or 
proper in order to vest the said premises in 
such new Trustees. 

The Corporation Trustee, with the written 
concurrence of Lyon, Gary & Company shall 
also have the right to remove Frederick H. 
Eawson as a Trustee hereunder, and to ap- 
point another person as Trustee in his place 
and stead, by a writing signed and acknowl- 
edged by both said Union Trust Company and 
Lyon, Gary & Company, and such writing when 
recorded in the proper offices for recording 
deeds and mortgages in the counties above 
named shall ipso facto and without further ac- 
tion substitute such new Trustee in the place 
of the said Frederick H. Eawson, with all the 
rights, powers and privileges granted to the 



TRUST DEEDS 157 

said Frederick H. Rawson under this instru- 
ment, and no conveyance from said Frederick 
H. Rawson to the new Trustee so appointed 
shall be necessary to vest in said new Trustee 
the rights, title, interest and authority there- 
tofore held by said Frederick H. Rawson. 

And likewise in case of the death or resigna- 
tion, or the incapacity or inability of the said 
Frederick H. Rawson, to act as Trustee here- 
under, the said Union Trust Company and said 
Lyon, Gary & Company, may in like manner ap- 
point another person in his place and stead, 
and succeeding to all the title, rights, powers 
and privileges herein or hereby conferred upon, 
or vested in the said Frederick H. Rawson — 
this being an alternative method of filling such 
vacancy, in addition to that provided in Article 
XXVIII hereof. 

ARTICLE XXX. 

It is expressly understood and agreed that 
no obligation whatever rests upon the Trus- 
tees to see to the recording of this instrument, 
nor to do any act suitable or proper to be done 
for the continuing of the lien created hereby, 
nor to give notice of the existence of such lien, 
nor to do any act which, by the terms of this 
instrument, is required to be done by some 
party hereto other than said Trustees. Said 
Trustees shall be under no duty or obligation, 
not affirmatively expressed on the face of these 
presents. Nor are said Trustees required by 



158 TIMBER BONDS 

this instrument to take any action nor do any 
act made requisite by statute for protecting, 
perpetuating or keeping good the lien of these 
presents upon the land, premises and property 
or any part thereof, hereby conveyed or intend- 
ed so to be ; nor shall the said Trustees be held 
responsible for the consequence of any breach 
by the Company or by its agents or servants, 
of any of the covenants herein or in said bonds 
contained, on the part of said party of the first 
part to be kept and performed, nor for or on ac- 
count of any act of the Company or of its 
agents or servants, of any kind, character or 
nature whatsoever. Said Trustees shall have 
no responsibility as to the validity of this 
mortgage or deed of trust, nor as to the execu- 
tion or acknowledgment hereof, nor as to the 
amount or extent of the security afforded by 
the property covered hereby; nor shall said 
Trustees in any other manner, or under any 
circumstances, be answerable or accountable, 
except for bad faith; it being expressly under- 
stood and agreed that the recitals herein con- 
tained are made by and on behalf of the said 
parties of the first and second parts and that 
the Trustees are not responsible for the cor- 
rectness thereof. 

Said Trustees shall not be under any obliga- 
tion to take any action toward the execution or 
enforcement of the trust hereby created, which 
in their opinion, would be likely to involve them 
in expense or liability, nor to defend any suit, 



TRUST DEEDS 159 

unless one or more of the holders of the bonds 
hereby secured shall, as often as required by 
the said Trustees, furnish them with reasonable 
and satisfactory indemnity against such ex- 
pense or liability; nor shall the said Trustees 
be required to take notice of any default here- 
under, unless notified in writing of such de- 
fault by the holders of at least ten (10) per 
centum of the amount of the bonds hereby se- 
cured and then outstanding, nor to take any 
action in respect of any default unless request- 
ed to take such action by writing signed by the 
holders of bonds in the amount hereinbefore 
in this Article provided, and be tendered in- 
demnity as aforesaid, anything herein contain- 
ed to the contrary notwithstanding ; but neither 
any such notice or request, nor this provision 
therefor, shall affect any discretion herein giv- 
en to the said Trustees to determine whether 
or not they will take action in respect to such 
default, or to take action without such request. 

The Trustees shall be protected in acting up- 
on any request, consent, certificate, bond, af- 
fidavit, or other paper or document believed 
by them to be genuine and to be signed by the 
proper party or parties. 

Said Trustees shall be entitled to be reim- 
bursed for all proper outlays of every sort and 
nature by them incurred, or for which they may 
be obligated in the discharge of this trust, and 
to receive a reasonable and proper compensa- 
tion for any duties that they may at any time 



160 TIMBER BONDS 

perform in the discharge of the same, and shall 
have a lien therefor upon the mortgaged prop- 
erty, prior and paramount to the bonds hereby 
secured. 

All expenses, fees, taxes and disbursements 
of any kind which have been made, or which 
may be made or incurred by the Trustees in 
order to comply with any law or laws of the 
State of Oregon respecting foreign corpora- 
tions, or relating to the right, authority, or 
qualification of the Trustees to accept this trust 
and perform their duties hereunder, and all 
liabilities and expenses which may be incurred 
by them, and all penalties, judgments or for- 
feitures which may be assessed, levied, or re- 
covered against the Trustees for failure to com- 
ply with any such law or laws, shall be a charge 
and shall constitute a lien upon the mortgaged 
property and premises prior and paramount 
to the bonds hereby secured. In case at any 
time it shall be necessary and proper for the 
said Trustees, or their successors, to make any 
investigation respecting any facts, preparatory 
to taking or not taking any action or doing or 
not doing anything under this deed of trust, 
the certificate of the said party of the first part 
under its corporate seal and sworn to by its 
President, or Secretary, shall be sufficient evi- 
dence of such fact to protect the said Trustees 
or their successors, in any action that they may 
take or decline to take by reason of the sup- 
posed existence of such fact. 



TRUST DEEDS 161 

Unless it shall in writing expres sly agree to 
do so, the Trust Company shall not be obligated 
to pay interest on any sum of money which 
may be deposited with it under any of the pro- 
visions of this instrument, but if the Trust 
Company shall in writing expressly agree to 
pay interest on any such deposits, the amount 
of such interest shall be credited to or paid 
into the fund for retiring bonds as provided for 
in Article VII and other Articles hereof. 

ARTICLE XXXI. 

Except and unless it be upon his individual 
endorsement or guarantee, no recourse under 
any obligation, covenant or agreement of this 
instrument, or of any bond or coupon hereby 
secured, shall be had against any incorporator, 
stockholder, officer or director of the Company, 
either directly or through the Company by vir- 
tue of any statute, Constitutional provision, 
or otherwise, it being expressly agreed and un- 
derstood that this mortgage and the obligations 
hereby secured are solely corporate obligations, 
and that no personal liability whatever (ex- 
cept it arise by individual endorsement or 
guarantee) shall attach to, or be incurred by 
the incorporators, stockholders, officers or di- 
rectors of the Company, or any of them, under 
or by reason of any of the obligations, cove- 
nants, or agreements contained in this instru- 
ment, or in any of the bonds or coupons se- 



162 TIMBER BONDS 

cured hereby, or implied therefrom, and that 
except as above provided, any and all personal 
liability, either at common law or civil law, or 
in equity, or by statute, of every such incor- 
porator, stockholder, officer or director, is here- 
by expressly waived by each and every person 
who may become the owner of any one or more 
of the bonds secured hereby, as a condition of, 
and in consideration for the execution and issue 
of this mortgage and such bonds and coupons. 

ARTICLE XXXII. 

Union Trust Company is made a trustee 
hereunder in the contemplation and belief that 
it is now and will continue to be lawful for 
said corporation to act as Trustee hereunder 
and perform all the duties herein imposed upon 
or entrusted to it as such Trustee without the 
necessity of said corporation qualifying under 
the Statutes of the State of Oregon to do busi- 
ness in that State, and without the necessity of 
said corporation complying with the require- 
ments of any other Oregon statute or law now 
in force or which may hereafter be enacted; 
and should it prove at any time that said Union 
Trust Company is not now legally entitled to 
accept this Trust, act as Trustee hereunder and 
perform all the duties imposed hereunder and 
exercise all the rights conferred hereby; or if 
for any reason, by the enactment of statutory 
law, by the failure to comply with any law, or 



TRUST DEEDS 163 

otherwise it shall subsequently be or become 
unlawful for said Union Trust Company to so 
act, then and in that event the entire rights, 
duties and authority herein intended to be 
granted to and conferred upon said Union 
Trust Company and Frederick H. Eawson 
jointly or upon either of them as Trustees here- 
under, shall immediately and ipso facto vest 
in and be held and exercised by said Frederick 
H. Eawson alone, and his successor or succes- 
sors. 

And in case, at any time when action hereun- 
der may be necessary or authorized, it shall be 
impossible or illegal or be deemed impossible 
or illegal by said Union Trust Company, or by 
its successor, as Trustee, for it, the Union 
Trust Company, or such successor Trustee, to 
do or perform any act or acts necessary or 
proper for it to do as Trustee under the terms 
of this instrument, then and in such case the 
said Frederick H. Eawson or his successor for 
the time being shall have full power and au- 
thority to perform all and every such act or 
acts of whatsoever nature as fully as if he had 
alone in the first instance been herein specifi- 
cally authorized thereunto; and in that event 
any and all acts so done by the said Frederick 
H. Eawson, Trustee, or his successor in the 
Trust, shall have the same effect as if done by 
the said Trustee jointly with Union Trust 
Company, Trustee, or its successor trustee — 
excepting, always, that no instrument given to 



164 TIMBER BONDS 

discharge or cancel this mortgage or deed of 
trust under Article XIV hereof shall be effect- 
ive unless signed by both the Trustees named 
herein or by their successors. 

ARTICLE XXXIII. 

The word "Trustees" as used in this instru- 
ment shall be held and construed to mean 
the Trustees herein named or their successor 
or successors for the time being in the trust 
hereby created; the words "the Company" 
shall be held and construed to mean Linn and 
Lane Timber Company, its successors and as- 
signs; and the words "the Grantors" shall be 
held and construed to mean and include Linn 
and Lane Timber Company, and C. A. Smith 
Lumber and Manufacturing Company, and 
their successors and assigns. 

And wherever the name "Lyon, Gary & 
Company" is used herein, it shall be held and 
construed to mean Lyon, Gary & Company, the 
present Illinois corporation, or such person, 
firm or corporation as may succeed said cor- 
poration according to the terms of this instru- 
ment. 

ARTICLE XXXIV. 

This instrument and the negotiations lead- 
ing up thereto, and any that may follow in car- 
rying out the purposes of this bond issue and 
the negotiation and sale of the bonds issued 
hereunder, are hereby declared to be and shall 



TRUST DEEDS 165 

in all things be deemed and treated as an Ore- 
gon contract entered into between the parties 
hereto and the purchaser or holders of all or 
any portion of the bonds issued hereunder, and 
shall be governed by the laws of the said State 
of Oregon, to the same effect as if this contract 
had been executed in that State, and all the ne- 
gotiations above described, occurring both be- 
fore and after the execution of this instrument 
(instead of but a portion of them) had been 
had in that State. 

And each Article of this instrument is hereby 
declared to be and shall be held to be a separ- 
ate and independent clause thereof. 

AETICLE XXXV. 

Union Trust Company, and Frederick H. 
Eawson, hereby accept the trusts herein and 
hereby declared and created, and agree to per- 
form the same upon the terms and conditions 
hereinbefore set forth. 

AETICLE XXXVI. 

For convenience in recordation this instru- 
ment is executed in six counterparts, each of 
which shall for all purposes be considered and 
treated as an original. 

In witness whereof, the said Linn and Lane 
Timber Company; the said C. A. Smith Lum- 
ber and Manufacturing Company, and the said 
Union Trust Company, have caused this in- 
strument to be executed in their corporate 



166 TIMBER BONDS 

names by their respective Presidents or Vice- 
Presidents, and their corporate seals to be 
hereunto affixed and attested by their respect- 
ive secretaries; and the said Frederick H. 
Eawson has signed and sealed the same, all in 
the presence of witnesses, on the date first here- 
in written. 

Linn and Lane Timber Company, 
By C. A. Smith, 

Its President. 

Attest : 

Charles L. Trabert, 

Its Secretary. 
Witness to the execution of this 
instrument by Linn and Lane 
Timber Company: [corporate seal] 

John Lind, 
A. Ueland. 

C. A. Smith Lumber and Manufacturing 
Company, 

By C. A. Smith, 

Its President. 

Attest : 

Charles L. Trabert, 
Its Secretary. 
Witness to the execution of this 

instrument by C. A. Smith Lum- 
ber and Manufacturing Company: 

John Lind, [corporate seal] 

A. Ueland. 



TRUST DEEDS 167 

Union" Tkust Company, 
By Frederick Eawson, 
[corporate seal] Its President 

Attest : 

Eufus F. Chapin, 

Its Secretary. 
Witness to the execution of this 
Instrument by Union Trust Company : 
Gtail Dray, 
John U. Switzer. 

Frederick H. Eawson. [seal] 
Witness to the execution of this 
instrument by Frederick H. Eaw- 
son: 

Gail Dray, 
John U. Switzer. 



> ss. 



State of Minnesota, 
County of Hennepin, 

On this 9th day of June, 1910, before me, W. 
M. Jerome, a Notary Public in and for said 
State and County, appeared C. A. Smith, to me 
personally known, who being duly sworn, did 

say that he is the President of 

Linn and Lane Timber Company, a Minnesota 
corporation, and that the seal affixed to said 
foregoing instrument is the corporate seal of 
said corporation, and that said instrument was 
signed and sealed in behalf of said corporation 



168 TIMBER BONDS 

by authority of its Board of Directors, and said 
C. A. Smith acknowledged said instrument to 
be the free act and deed of said corporation. 

In testimony whereof, I have hereunto set 
my hand and affixed my official seal at my of- 
fice in said State and County, this the day and 
year first in this my certificate written. 

My Notarial Commission is dated June 26, 
1907, and expires June 26, 1914. 

W. M. Jerome, 
Notary Public, Hennepin County, 
State of Minnesota. 
Certificate of Magistracy attached. 

[notarial seal] 

State oe Minnesota, ) 

V ss 
County of Hennepin. | 

On this 9th day of June, 1910, before me, W. 
M. Jerome, a Notary Public in and for said 
State and Comity, appeared C. A. Smith, to 
me personally known, who being duly sworn, 

did say that he is the President of 

C. A. Smith Lumber and Manufacturing Com- 
pany, a Minnesota corporation, and that the seal 
affixed to said foregoing instrument is the cor- 
porate seal of said corporation, and that said 
instrument was signed and sealed in behalf of 
said corporation by authority of its Board of 
Directors, and said C. A. Smith acknowledged 
said instrument to be the free act and deed of 
said corporation. 



TRUST DEEDS "' 169 

In testimony whereof, I have hereunto set 
my hand and affixed my official seal at my office 
in said State and Comity, this the day and year 
first in this my certificate written. 

My Notarial Commission is dated Jnne 26th, 
1907, and expires June 26th, 1914. 

W. M. Jerome, 
[notarial seal] 

Notary Public, Hennepin County, 
State of Minnesota. 

State of Illinois, j 

r SS 

County of Cook. J 

On this 11th day of June, 1910, before me, H. 
L. Benson, a Notary Public in and for said 
State and County, appeared Frederick H. Raw- 
son, to me personally known, who being duly 
sworn, did say that he is the Presi- 
dent of Union Teust Company, an Illinois cor- 
poration, and that the seal affixed to said fore- 
going instrument is the corporate seal of said 
corporation, and that said instrument was 
signed and sealed in behalf of said corporation 
by authority of its Board of Directors, and said 
Frederick H. Rawson acknowledged said in- 
strument to be the free act and deed of said 
corporation. 

In testimony whereof, I have hereunto set 
my hand and affixed my official seal at my of- 
fice in said State and County, this the day and 
year first in this my certificate written. 



170 TIMBER BONDS 

My Notarial Commission is dated Oct. 12, 
1906, and expires Oct. 12, 1910. 

H. L. Benson, 

Notary Public, Cook County, 

State of Illinois. 

Certificate of Magistracy attached. 

[notakial seal] 



State of Illinois, 
County op Cook. 

Before me, H. L. Benson, the undersigned, a 
Notary Public in and for the State and County 
aforesaid, personally appeared the above nam- 
ed Frederick H. Eawson, to me known to be 
the individual described in and who executed 
the above instrument, and the said Frederick 
H. Eawson acknowledged that he executed the 
same, this 11th day of June, 1910. 

My Notarial Commission is dated Oct. 12, 
1906, and expires Oct. 12, 1910. 

Witness my hand and official seal at office in 
Chicago, Cook County, Illinois, on the date 
above written. 

H. L. Benson, 

Notary Public, Cook County, 

State of Illinois. 

[notakial seal] 



TRUST DEEDS 171 

State of Oregon, 



County of Coos. 

I hereby certify that the within instrument 
was filed for record June 16, 1910, at 2 o'clock 

and minutes P. M. and recorded June 16, 

1910, in book 25 of Mortgages in page 438 — 
Indexed in Chattel Mortgages Vol. 5. 

James Watson, 
County Clerk. 



State of Oregon, ) 

> ss 
County of Curry. j 

I certify that the within was received and 

duly recorded by me in Curry County Eecords 

Book of Mortgages Vol. 5 Page 461 to 479 on 

the 18th day of June, 1910, tiled June 18th, 1910, 

at 9 A. M. 

Geo. W. Smith, 

County Clerk. 



State of Oregon, 

y eg 

County of Douglas. 

I hereby certify that the within was recorded 
be me in Douglas County Eecords, Book of 
Mortgages Vol. 27 Pages 172 to 196 on the 15th 
day of June, 1910. 

E. H. Lenox, 
County Clerk 
Filed June 15, 1910 at 1:15 P. M. 

E. H. Lenox, 
County Clerk. 



172 timber bonds 

State of Oregon, 

v ss. 



J 



Lane County. 

I hereby certify that the within instrument 
was filed for record this 21 day of June, 1910, 
at 2 :30 o'clock P. M. and duly recorded in Book 
29 page 329 Lane County Mortgage records. 

E. U. Lee, 
County Clerk, 
Per J. A. Fountain, 

Deputy. 

State of Okegon, I 
County of Lincoln. J 

I hereby certify that the within instrument 
was received for record on the 15th day of 
June, 1910, at 8 o'clock A. M. and recorded in 
Book 10 on page 102 record of Mortgages of 
said Count} r . "Witness my hand and seal of 
County affixed. 

Ira Wade, 
County Clerk. 
By Euth Ofstedahl, 
Deputy. 

State of Oregon, 



ss 
County of Linn 

I hereby certify that the within was received 

and duly recorded by me in Linn County Eec- 

ords, Book of Mtgs. Vol. 51, Pages 158 to 202 

on the 15th day of June, 1910 at 8:00 o'clock 

A. M. 

Grant Froman, 

Recorder of Linn County, Oregon. 



TRUST DEEDS 173 



FIRST MORTGAGE 



SOUTHERN TIMBER COMPANY 

TO 

UNION TRUST COMPANY 

AND 

JOHN K. LYON 

TRUSTEES, 



DATED NOVEMBER 17, 1910. 



TO SECURE THE PAYMENT OF $200,000 SIX PER CFNT 

GOLD BONDS OF SOUTHERN TIMBER COMPANY, 

DATED NOVEMBER 19, 1910. 



174 TIMBER BONDS 

THIS INSTEUMENT, made and entered into 
this seventeenth day of November, A. D., 
1910, by and between Southern Timber Com- 
pany, a corporation organized and existing 
under and by virtue of the laws of the State 
of Georgia (sometimes hereinafter for brev- 
ity called the Company), party of the first 
part, and Union Trust Company, a corpora- 
tion organized and existing under and by 
virtue of the laws of the State of Illinois 
(sometimes hereinafter referred to as the 
Corporation Trustee), and John K. Lyon, of 
Hubbard Woods, Cook County, State of Illi- 
nois, as Trustees, parties of the second part, 

WITNESSETH : 

Whereas, Southern Timber Company is the 
owner of certain timber, lands, logging rights, 
logging plant and equipment, logging railroad 
and equipment and other property in Liberty 
County, State of Georgia; and has full power 
and authority under its charter and the laws 
of the State of Georgia to borrow money for 
the transaction of its business in the exercise 
of its corporate powers, to issue its negotiable 
bonds to evidence the indebtedness thus in- 
curred, and to mortgage its property to secure 
the payment' of the same ; and 

Whereas, by the unanimous action of its 
Board of Directors, concurred in by the owrf- 
ers and holders of its entire capital stock (both 
of which actions have been duly taken and ex- 
pressed according to law) the Company has 



TRUST DEEDS 175 

resolved to borrow money for its corporate 
purposes, and to issue and dispose of its nego- 
tiable mortgage bonds therefor; and to secure 
the payment of said bonds, together with in- 
terest thereon, by a mortgage or deed of trust 
in the form of this instrument upon its prop- 
erty hereinafter described, together with the 
rents, issues and profits of the same, and which 
mortgage or deed of trust shall be a first lien 
thereon; and 

Whekeas, by unanimous action of its Board 
of Directors, concurred in by the owners and 
holders of its entire capital stock (both of 
which actions have been duly taken and ex- 
pressed according to law) the Company has 
further resolved that said bonds shall bear date 
November 19, 1910, shall be for the aggregate 
amount of Two Hundred Thousand (200,000) 
Dollars, shall be 200 in number consecutively 
numbered, and in denominations of $1,000, and 
which bonds shall become due and payable as 
follows, to wit : 

Bonds numbered. Maturities. 

1 to 33 inclusive on May 15, 1911; 

34 to 66 inclusive on November 15, 1911; 

67 to 99 inclusive on May 15, 1912; 

100 to 132 inclusive on November 15, 1912; 

133 to 165 inclusive , . .on May 15, 1913; 

166 to 200 inclusive on November 15, 1913; 

all of which bonds shall be payable to bearer 
(unless registered), in gold coin of the United 
States of America of the standard of weight 
and fineness existing on November 19, 1910, 



176 TIMBER BONDS 

notwithstanding any law which may now or 
hereafter make anything else legal tender in 
payment of debts, at the banking house of 
Union Trust Company in the City of Chicago, 
State of Illinois, together with interest on said 
bonds at the rate of six (6) per centum per 
annum, which interest shall be similarly pay- 
able in like gold coin May 15, 1911, and semi- 
annually thereafter on the fifteenth day of No- 
vember and the fifteenth day of May in each 
year until the principal sum shall be fully paid, 
upon the presentation and surrender of the 
coupons annexed to each of said bonds as they 
respectively become due, at the place of pay- 
ment of the principal of said bonds; that the 
said bonds shall be executed in the name of the 
Company by its President (or its Vice Presi- 
dent) and Secretary, with its corporate seal 
affixed, and that the coupons issued to evidence 
the interest upon said bonds until their maturity 
shall be authenticated by the engraved facsimile 
signature of the present Treasurer of the Com- 
pany ; and that each of said bonds, and each of 
the coupons thereto attached, and the Trustee 's 
and Begistrar's certificates endorsed thereon 
shall be substantially in the forms following, 
to wit: 



TRUST DEEDS 177 

UNITED STATES OF AMERICA 

State of Georgia. 

$1000 ' Number $1000 

SOUTHERN TIMBER COMPANY 

First Mortgage Six Per Cent Sinking Fund 
Gold Bond. 

For value received, SOUTHERN TIMBER 
COMPANY, a corporation organized and exist- 
ing under and by virtue of the laws of the State 
of Georgia, and having its principal office in 
Liberty County, said State, hereby promises to 
pay to the bearer hereof, or in case this bond 
be registered then to the registered holder here- 
of, One Thousand Dollars on the fifteenth day 

of , 19 , and to pay interest 

thereon from the date hereof at the rate of six 
(6) per centum per annum, payable semian- 
nually, on the fifteenth day of May and the fif- 
teenth day of November in each year, upon the 
presentation and surrender of the coupons here- 
to annexed as they severally become due, both 
principal and interest being payable at the 
banking house of Union Trust Company in the 
City of Chicago, State of Illinois, in gold .coin 
of the United States of America, of or equal 
to the present standard of weight and fineness, 
notwithstanding any law which may now or 
hereafter make anything else legal tender for 
the payment of debts, without deduction for 
any United States, State, County, Municipal or 
other tax or taxes, or governmental or other 
charges, which the maker hereof, or its succes- 



178 TIMBER BONDS 

sors or assigns, or the Trustees or either of 
them hereinafter mentioned, may be required 
or permitted to pay, or to deduct or retain 
therefrom under or by reason of any present or 
future law. 

This bond is one of a series of 200 bonds in 
denominations of $1,000, numbered consecutive- 
ly from 1 to 200, both numbers inclusive, and 
which are due and payable as follows : Bonds 
numbered 1 to 33 inclusive, May 15, 1911; 
Bonds numbered 34 to 66 inclusive November 
15, 1911; Bonds numbered 61 to 99 inclusive 
May 15, 1912 ; Bonds numbered 100 to 132 in- 
clusive November 15, 1912; Bonds numbered 
133 to 165 inclusive May 15, 1913 ; and Bonds 
numbered 166 to 200 inclusive November 15, 
1913 ; all issued under the provisions of and all 
equally secured by a first mortgage or deed of 
trust dated November 17, 1910, duly authorized, 
executed, acknowledged and delivered by the 
maker hereof to Union Trust Company of Chi- 
cago, Illinois, and John K. Lyon, of Hubbard 
Woods, Cook County, Illinois, as Trustees, 
which mortgage or deed of trust conveys tim- 
ber, lands, logging rights, a logging railroad, 
logging equipment and other property in Lib- 
erty County, Georgia, and which has been prop- 
erly recorded in said county. For a more com- 
plete description of the property thereby mort- 
gaged; the nature and extent of the security; 
the description of the bonds thereby secured 
and the rights of the holders thereof under the 



TRUST DEEDS 179 

same and the terms and conditions upon which 
said bonds are issued, reference is hereby made 
to said mortgage or deed of trust with the same 
force and effect as if the provisions thereof 
were herein fully set forth. 

This bond may be redeemed in the manner 
provided in said mortgage or deed of trust, at 
any interest payment date before its date of ab- 
solute maturity upon payment to the holder 
hereof, or to said Union Trust Company, Trus- 
tee, for the benefit of such holder, of the prin- 
cipal hereof, together with all interest due here- 
on at the date fixed for such redemption, and a 
premium of three (3) per centum on the prin- 
cipal hereof ; and in event of default as denned 
in the aforesaid mortgage or deed of trust, the 
principal of this bond may be declared and be- 
come due and payable in the manner and with 
the effect therein provided. 

This bond shall pass by delivery unless reg- 
istered, but it may be registered as to the prin- 
cipal hereof in the holder's name on registra- 
tion books kept for that purpose by said Union 
Trust Company, Eegistrar, such registry being 
noted hereon by said Eegistrar, after which 
only such registered holder shall be entitled to 
receive the principal hereof; and if registered 
no subsequent transfer hereof shall be valid, 
unless made on said Eegistrar 's books and 
similarly noted hereon; but the same may be 
discharged from registry by transfer to bearer, 
after which it shall be transferable by delivery. 



180 TIMBER BONDS 

It may be registered again, however, in the 
manner above provided. The registry of this 
bond shall not impair the negotiability of the 
coupons, but they shall continue to be transfer- 
able by delivery notwithstanding snch regis- 
tration. 

The maker hereof hereby consents in case of 
the foreclosure of the mortgage or deed of trust 
given to secure the payment of the said bonds, 
to the entry of a deficiency judgment against 
it, and that the same may be effected by appro- 
priate order or decree in any such foreclosure 
proceedings. 

This bond shall not be obligatory for any 
purpose until it shall have been authenticated 
by the certificate of Union Trust Company, one 
of the Trustees under said mortgage or deed of 
trust, endorsed hereon. 

IN WITNESS WHEREOF, SOUTHERN 
TIMBER COMPANY has caused this instru- 
ment to be signed in its corporate name by its 
President, and its corporate seal to be here- 
unto affixed, and attested by its Secretary ; and 
the interest coupons hereto attached to be au- 
thenticated by the facsimile signature of its 
Treasurer, this the nineteenth day of Novem- 
ber, 1910. 

SOUTHERN TIMBER COMPANY 

By 

Attest: Its President. 



Its Secretary. 



TRUST DEEDS 181 

$30 COUPON 

On the fifteenth day of • , 19 ... . 

SOUTHEEN TIMBER COMPANY, a Georgia 
corporation, promises to pay to bearer Thirty 
(30) Dollars in gold coin of the United States 
of America of the standard existing on Novem- 
ber 19, 1910, at the banking honse of Union 
Trust Company in the City of Chicago, State of 
Illinois, without deduction for taxes or other 
governmental assessments or charges, being six 
months ' interest due that date on its first mort- 
gage gold bond of November 19, 1910. 

No., 

Treasurer. 

TRUSTEE'S CERTIFICATE. 

This is to certify that this is one of the bonds 
described in and secured by the mortgage or 
deed of trust within referred to. 

UNION TRUST COMPANY, Trustee, 

Bv 



REGISTRATION 

Notice : There must be no writing in this 



182 



TIMBER BONDS 



form except by the Eegistrar, the Union Trust 
Company. 



Date of 
Registration 


Name and Address 
Registered Owner 


Signature of 
Registrar 

























































And whebeas, all things necessary to make 
said bonds when executed by the Company and 
certified by the Corporation Trustee, a valid, 
binding, legal, negotiable obligation of the 
Company, and this instrument a valid mort- 
gage to secure the payment thereof, have been 
done, happened and been performed: — 

Now, therefore, for and in consideration of 
One Dollar in hand paid by the parties of the 
second part to the party of the first part, the 
receipt whereof is hereby acknowledged, and 
the other considerations herein expressed, and 
in order to secure the payment of the principal 
and interest of all of said bonds above de- 
scribed, at any time outstanding, according to 
their tenor and effect, and to secure the per- 
formance of all the covenants and conditions 
herein contained, and to declare the terms and 
conditions upon which said bonds are issued or 
to be issued, and for and in consideration of 



TRUST DEEDS 183 

the acceptance or purchase of said bonds or 
any of them, by whomsoever may be or become 
the holders thereof, the said Southern Timber 
Company has executed and delivered these pres- 
ents, and hereby grants, sells, bargains, aliens, 
releases, conveys, assigns, warrants, transfers, 
and mortgages unto said Union Trust Com- 
pany and John K. Lyon, Trustees, their suc- 
cessors and assigns, with full subrogation to 
any and all warranties or rights in action 
against previous vendors or holders or other 
persons, the following described timber, lands, 
logging rights, logging railroad, logging equip- 
ment and railroad equipment and other prop- 
erty, all now lying, being and situate in Liberty 
County, State of Georgia, to wit: 

The following real, personal and mixed prop- 
erty, lying in the 15th and in the 1458th Dis- 
tricts, Georgia Militia, of Liberty County, State 
of Georgia, to wit: 

First: The railroad owned by the Company 
and running from the Byers-Allen Lumber 
Company's mill at Allenhurst, toward and into 
a portion of the property hereinafter conveyed ; 
Second : All the railroad rail owned by the 
Company, being about fifteen miles of new 
forty pound rail stored at Allenhurst, Georgia ; 

Third: The equipment of said railroad, con- 
sisting of cars, engines, et cetera ; 

Fourth: The entire logging equipment be- 
longing to the Company, consisting of one Mc- 
Giffert loader, one four-line Clyde skidder, 



184 TIMBER BONDS 

forty steel logging trucks, six camp box cars, 

and other logging equipment; 
Fifth: Timber— 

A — All the trees standing, lying or being on the 
four tracts of land indicated on the ac- 
companying map as : 

(1) Westfield 13901-2 acres; 

(2) Hines 8901-2 acres; 

(3) Oaklawn 308 acres; and 

(4) Bacon 1837 acres ; 

which four tracts are contiguous, and are more 
particularly described as follows, to wit : 

Beginning at a point on the Mcintosh road 
indicated by a star on the map hereto 
attached, it being the beginning corner 
of the tract held in fee as hereinafter 
described, and running thence with the 
line of said tract held in fee along said 
Mcintosh road North 18% degrees East 
17.80 chains; 

Thence South 83% degrees East 36.40 
chains ; 

Thence North 283/4 degrees East 25.35 
chains along said road; 

Thence North 2 degrees West 11 chains 
along said road; 

Thence due North 22.75 chains along said 
road; 

Thence North 8% degrees East 3.14 chains 
along said road; 

Thence North 40% degrees East 10.20 
chains along said road; 



TRUST DEEDS 185 

Thence North 3iy 2 degrees East 14.44 

chains along* said road; 
Thence North 50% degrees East 8.27 

chains along said road; 
Thence North 64% degrees East 95 links 

along said road; 
Thence North 863/4 degrees East 15.75 

chains along said road to a gum ; 
Thence North 69% degrees East 12.15 

chains along said road; 
Thence leaving the line of the tract held in 

fee, North 2 degrees East 13.18 chains ; 
Thence North 51 degrees West 10 chains ; 
Thence North 85 degrees West 13.70 chains ; 
Thence North 35 degrees East 19 chains to 

a stake in the center of Mulberry 

Swamp : 
Thence Westwardly with the center of said 

Mulberry Swamp about 23 chains more 

or less to a stake; 
Thence South 14 degrees West 19.40 

chains ; 
Thence North 85 degrees West 20.50 

chains ; 
Thence South 31 degrees West 9 chains ; 
Thence South 4 degrees West 3.50 chains; 
Thence South 31 degrees West 25.84 

chains ; 
Thence due West 20.69 chains; 
Thence South 2 degrees East 5 chains; 
Thence due East 5 chains to a dam; 
Thence South 14 degrees East 4.27 chains ; 



186 TIMBER BONDS 

Thence South 70 degrees West 5.70 chains ; 

Thence North 15 degrees East 4 chains ; 

Thence South 80 degrees "West 19.50 chains ; 

Thence North 70 degrees West 25 chains; 

Thence South 75 degrees West 8 chains ; 

Thence South 11 degrees West 38.82 chains ; 

Thence South 89 degrees West 109 chains ; 

Thence South 85 degrees West 34 chains to 
the line of the right of way of Atlantic 
Coast Line Eailroad Company, a point 
situated 2,370 feet Northeast from the 
crossing of the public road leading from 
Allenhurst to Hinesville; 

Thence Southwest along the line of the 
right of way of the Atlantic Coast Line 
Eailroad 23.50 chains to a stake on the 
right of way of the said Atlantic Coast 
Line Eailroad Company; 

Thence South 2 degrees West 73.50 chains ; 

Thence North 85 degrees East 24.76 
chains ; 

Thence South 30 degrees East 36.05 chains, 
to a sweet gum near Cockrane Branch; 

Thence South 49% degrees West 10.60 
chains ; 

Thence South 84 degrees West 12.12 
chains ; 

Thence South 12% degrees West 12.12 
chains ; 

Thence due West 22.73 chains; 

Thence North 83 degrees West 19.70 
chains ; 



TRUST DEEDS 187 

Thence South 49% degrees West 8.79 
chains to the road leading from the vil- 
lage of Walthourville to Walthourville 
depot ; 

Thence South 46 degrees East along said 
road 12.83 chains; 

Thence North 89% degrees East 9.83 
chains ; 

Thence South 1% degrees East 7.94 chains 
to a stake on the East side of the road 
to Walthourville depot; 

Thence North 86% degrees East 50 chains ; 

Thence North 75 degrees East 11 chains 
to a stake on the South side of the Wal- 
thourville road; 

Thence South 10 degrees West 14.75 chains ; 

Thence North 80 degrees East 7.40 chains ; 

Thence South 2% degrees West 26.17 
chains ; 

Thence North 72 degrees East 37.95 
chains ; 

Thence South 55% degrees East 56 chains ; 

Thence South 71% degrees East 45 chains 
to a line of the Pleasant Valley 900 acre 
tract, a part of the fee land hereinafter 
described and known as the Hilton and 
Dodge lands; 

Thence with the Western line of the Hil- 
ton and Dodge lands the following 
courses and distances — 

North 24% degrees East 25.92 chains ; 

Thence North 4% degrees East 38.88 



188 TIMBER BONDS 

chains to the road leading to Allenhurst ; 
Thence North 73 degrees East 3.90 chains ; 
Thence North 2% degrees East 27.70 

chains ; 
Thence South 86 degrees East 34.48 chains ; 
Thence leaving the line of the Hilton and 
Dodge lands and running North 6% de- 
grees East 8.76 chains ; 
Thence North 80 degrees West 9.85 chains ; 
Thence North 13 degrees East 2.41 chains ; 
Thence North 61 degrees East 7.21 chains ; 
Thence North 38 degrees West 8.48 chains ; 
Thence North 2 degrees East 7 chains; 
Thence North 18 degrees East 8.80 chains ; 
Thence North 3 degrees East 33.40 chains ; 
Thence North 68 degrees East 13.40 chains 
to the point of beginning and containing 
4426 acres; 
Together with the right to enter, cut and re- 
move the said timber on tracts 1, 2 and 3 first 
above referred to, to wit : Westfield, Hines and 
Oaklawn tracts, at any time within fifteen (15) 
years from August 11, 1908, and with the right 
to extend the said time of removal for an ad- 
ditional term of five (5) years (or until August 
11, 1928) upon the payment of Three Hundred 
(300) Dollars per annum to E. P. Miller, his 
heirs or assigns, and on tract 4 to wit: The 
Bacon tract within fifteen (15) years from May 
24, 1909, and with the right to extend the time 
of removal for an additional term of five (5) 
years (or until May 24, 1929) on the payment 



TRUST DEEDS 189 

of One Hundred and Twenty (120) Dollars per 
annum to E. P. Miller, his heirs or assigns. 

The timber and rights in this Item conveyed 
being the same acquired by E. V. Dunlevie from 
said E. P. Miller by deeds dated August 11, 
1908, and May 24, 1909, and recorded at pages 
531 et seq. in Book A-I, and at pages 293 et seq. 
of Book A-J, in the office of the Clerk of the 
Superior Court of Liberty County, Georgia. 

B — All the pine timber on the tract shown on 

the map and known as the Quarterman 320 

acres, which is more particularly described 

as follows: 

Beginning at a stake on the South side of 
the Sandy Run Eoad, a corner of the 
Middleton 580-acre tract as shown on 
the map; 

Thence crossing Sandy Run Road North 
51 degrees West 34.75 chains; 

Thence South 67 degrees West 25.70 chains 
to a stake on the South side of the Sandy 
Run Road; 

Thence South 31% degrees East 50.76 
chains ; 

Thence South 55 degrees East 12 chains; 

Thence North 28 degrees East 7 chains ; 

Thence South 54 degrees East 30.90 chains ; 

Thence North 28 degrees East 17 chains to 
the Southwest corner of the said Mid- 
dleton 580 acres ; 

Thence with the line of the Middleton 580 



190 TIMBER BONDS 

acres North 19 degrees East 20.60 chains ; 
Thence still with the line of the Middleton 

580 acres North 74 degrees West 32.34 

chains to the point of beginning — and 

containing 320 acres; 
Together with the right to enter, cut and re- 
move the said timber at any time within fifteen 
(15) years from November 30, 1908, and with 
the right to extend the said time of removal for 
an additional five (5) years (or nntil November 
30, 1928) upon the payment of Twelve (12) Dol- 
lars per annnm to Mrs. Rhonella Hendry, her 
heirs or assigns, — 

The timber and rights in this Item conveyed 
being the same acquired by E. V. Dunlevie from 
said Ehonella Hendry by deed dated Novem- 
ber 30, 1908, and recorded at pages 94 et seq., 
in Book A- J in the office of the Clerk of the 
Superior Court of Liberty County, Georgia. 

C — All pine and ash timber on a tract desig- 
nated on the map and known as the Mid- 
dleton 580 acres, containing by re- survey 
582 acres, and more particularly described 
as follows : 

Beginning on a stake near the South side 
of the Sandy Run Road, being the be- 
ginning corner of the above described 
Quarterman 320 acre tract; 
Thence with the line of the Quarterman 
320 acre tract South 74 degrees East 
32.34 chains; 



TRUST DEEDS 191 

Thence South 19 degrees West 20.60 

chains ; 
Thence leaving the line of the Quarterman 

tract South 78 degrees East 50.15 chains ; 
Thence North 77 degrees East 18.81 chains 

to the Jonesville Eoad and the line of 

the Middleton 664 acre tract, a part of 

the Hilton and Dodge fee lands; 
Thence with the line of the Hilton and 

Dodge fee lands the following courses 

and distances : 

North 16 degrees West 39.50 chains to 
the Sandy Eun Eoad; 
Thence along Sandy Eun Eoad South 87% 

degrees East 19.60 chains; 
Thence leaving the road North 12 degrees 

East 11.64 chains; 
Thence North 503/ 4 degrees West 13.25 

chains ; 
Thence North 13% degrees West 23.80 

chains ; 
Thence leaving the Hilton and Dodge fee 

lands, due West 50 chains; 
Then due South 6.79 chains; 
Thence due West 33.90 chains; 
Thence South 3 degrees West 33.34 chains 

to the place of beginning, — containing 

582 acres; 
Together with the right to enter, cut and re- 
move the said timber at any time on or before 
September 25, 1919; the timber and rights in 
this Item conveyed being the same acquired by 



192 TIMBER BONDS 

E. V. Dunlevie from Hilton & Dodge Lbr. Co. 
by deed dated May 28, 1908, and recorded at 
pages 444 et seq., in Book A-I in the office of 
the Clerk of the Superior Conrt of Liberty 
Connty, Georgia. 

D — All timber of every sort and description 
except cypress on the tract shown on the 
map as the Middleton 480 acres, being 
known as the Griffin Plantation, and being 
the tract described as Exclusion No. 1 in 
the bonndaries of the lands conveyed in 
fee as hereinafter described, — said Griffin 
Plantation, the timber on which is hereby 
conveyed, being more particularly de- 
scribed as follows: 
Beginning at a pine on the Sandy Enn 

Eoad and running 
Thence North 7% degrees West 33.33 

chains ; 
Thence North 3 degrees East 45 chains; 
Thence South 81.50 degrees East 64.30 

chains to a pine ; 
Thence South 18% degrees East 12.10 

chains to a light wood stump ; 
Thence South 8% degrees East 46 chains 

to the edge of the old road to Anderson 

Plantation ; 
Thence along the North side of said road 

South 60 degrees West 34 chains to the 

Sandy Eun Eoad; 
Thence North 55 degrees West 8 chains ; 



TRUST DEEDS 193 

Thence South 67 degrees West 3.40 chains ; 
Thence North 88 degrees West 28.75 chains 
to the point of beginning and containing 
480 acres; 
Together with the right to enter, cut and re- 
move the said timber at any time on or before 
February 11, 1914; and with the right to ex- 
tend the time of removal for an additional term 
of ten (10) years (or until February 11, 1924) 
upon the payment of Three Hundred (300) Dol- 
lars per annum to Joseph S. and Harry R. Mid- 
dleton, their heirs or assigns. 

The timber and rights in this Item conveyed 
being the same acquired by E. V. Dunlevie 
from Hilton & Dodge Lumber Co. by deed dated 
May 28, 1908, and recorded at pages 444 et seq., 
in Book A-I in the office of the Clerk of the 
Superior Court of Liberty County, Georgia. 

E — (1) All the pine timber (except that which 
is both dead and fallen) on 422 acres, being 
the Northwest portion of the 982-acre tract 
shown on the map and known as the Sulli- 
van tract, which 422 acres is more par- 
ticularly described as follows : 
Bounded on the North by the lands of Mrs. 

Howe ; on the East by the lands of E. P. 

Miller; on the South by the lands of C. 

B. Godwin and J. T. Saunders, and on 

the West by the lands of the Hilton & 

Dodge Lumber Company; 
Together with the right to enter, cut and re- 



194 TIMBER BONDS 

move the said timber at any time on or before 
April 5, 1917. 

(2) Also all the timber of every description 
on a 560-acre tract, being the remainder of the 
said 982-acre Sullivan tract, which 560 acres is 
more particularly described as follows: 

Bounded on the North by the lands of the 
estate of Polly Bacon, on the East by 
the lands of LeConte; on the South by 
the lands of Fraser and Allen, and on 
the West by the lands of D. C, Swindel, 
and Fraser and Allen; 
Together with the right to enter, cut and re- 
move the said timber at any time on or before 
April 19, 1917. 

The timber and rights hereby conveyed on 
the said two tracts being the same acquired by 
E. V. Dunlevie by deed from the Brewster Lum- 
ber Company, dated August 17, 1909, and rec- 
orded at page 418 of Book A- J of the records 
of the Clerk of the Superior Court of Liberty 
County, Georgia. 

(3) Also all the timber of all kinds and de- 
scription on the tract shown on the map and 
known as the Brewster 540 acres, which 540 
acres is more particularly described as follows : 

Bounded on the North by the lands of es- 
tate of George Howe, Joseph R. Bacon 
and E. P. Miller; on the East by the 
lands of Paul LeConte and others; on 
the South by Sandy Run Road; and on 



TRUST DEEDS 195 

the West by the lands of George Howe 
and F. B. Middleton; 
Together with the right to enter, cut and re- 
move the said timber, and the timber described 
in Item G hereof, at any time on or before 
August 11, 1923, and with the right to extend 
the said time of removal for an additional term 
of five (5) years (or until August 11, 1928) 
upon the payment of Three Hundred (300) Dol- 
lars per annum to E. P. Miller, his heirs or as- 
signs, the said timber and rights being the same 
acquired by E. V. Dunlevie from said E. P. 
Miller by deed dated December 31, 1908, and 
recorded at pages 135 et seq. in Deed Book A-J 
in the office of the Clerk of the Superior Court 
of Liberty County, Georgia. 

The above three tracts of 422 acres and 560 
acres (which taken together make up the tract 
shown on the map as the Sullivan tract) and 
the 540-acre Brewster tract (the timber on 
which is in this item conveyed) lie contiguous 
to each other, are embraced in one general 
boundary, and are more particularly described 
as follows: 

Beginning at a large gum in the center of 
the Sullivan Branch, being the Western 
corner of a tract shown on the map as 
the Brewster or Woodland 799 acres, and 
known in the records as the LeConte 
tract; 
Thence South 40 degrees West 48 chains 
to a stake on the dam; 



196 TIMBER BONDS 

Thence along said dam North 54 degrees 

West 95.60 chains; 
Thence North 22% degrees East 69.75 

chains ; 
Thence North 68 degrees West 57.83 chains 

to a tree marked with an "X" on a dam, 

being the line of the Middleton 900-aere 

tract as shown on the map, and part of 

the Hilton and Dodge fee land; 
Thence with the lines of the Hilton and 

Dodge fee lands the following courses 

and distances : 
North 23 degrees East 61.70 chains to the 

Sandy Bun Eoad; 
Thence along said road North 49 degrees 

West 7.66 chains to an oak on the North 

side of Sandy Eun Road ; 
Thence South 66% degrees East 42.60 

chains ; 
Thence North 27% degrees East 56.60 

chains to a pine; 
Thence South 68 degrees East 49.33 chains 

to a dam; 
Thence leaving the line of the Hilton and 

Dodge fee lands South 47 degrees East 

3281 feet on a dam; 
Thence South 73y 2 degrees West 1490 feet 

on a dam; 
Thence South 45 degrees West 1070 feet; 
Thence South 41 degrees East 394 feet on 

a dam to the North side of the Sandy 

Run Road; 



TRUST DEEDS 197 

Thence along said road South 76 degrees 

West 100 feet; 
Thenee along said road South 85% degrees 

West 1859 feet; 
Thenee along said road South 78 degrees 

West 1353 feet; 
Thence leaving the said road South 22y 2 

degrees East 120 chains to the point of 

beginning, containing 1,522 acres. 

F — All the timber on the tract of 799 acres 
shown on the map as the Brewster or 
Woodland tract, known on the records as 
the LeConte tract, and being generally de- 
scribed as : 

Bounded on the East by the lands of Jo- 
seph LeConte ; on the North by the lands 
of William Jones; on the West by the 
lands of Mrs. Harden, and on the South 
by Bull Town Swamp, 
which said 799-acre tract is more particularly 
described as follows: 

Beginning at a large gum in the middle of 
a swamp on Sullivan Branch, being the 
beginning corner of the above described 
Sullivan tract, and running 
Thence Southeastwardly with the center of 
Sullivan Branch to a dam at Flood Gate 
hole; 
Thence along the dam North 46% degrees 
East 56.01 chains to the center of the 
LeConte branch; 



198 TIMBER BONDS 

Thence along the center of LeConte branch 
in a Northwesterly direction to a stake; 
Thence South 39 degrees West 40.92 chains 
to the place of beginning, containing 799 
acres ; 
Together with the right to enter, cut and re- 
move the said timber at any time on or before 
April 19, 1917; being the same timber and 
rights acquired by E. V. Dunlevie from Brew- 
ster Lumber Company by deed dated August 
17, 1909, and recorded at page 418 et seq. in 
Deed Book A- J in the office of the Clerk of the 
Superior Court of Liberty County, Georgia. 

G — All the trees of every sort and description 
on the tract shown on the map and known 
as the Brewster 61.7 acres, said 61.7 acres 
being generally described as : 
Bounded on the North by the estate of Jo- 
seph E. Bacon, and Lot No. 11, as per 
survey of Capt. Wm. Hughes; on the 
East by Lot No. 2 ; on the South by lands 
formerly belonging to the estate of Jona- 
than Bacon, and on the West by the 
same, this being the Lot No. 1 of the 
Kedron Plantation as subdivided by 
Wm. Hughes, 
and which is more particularly described as 
follows : 

Beginning at a stake 963 feet East of the 
most Easterlv corner of the Brewster 



TRUST DEEDS 199 

540-acre tract, as shown on the map, and 
running 
Thence South 51 degrees East 1,520 feet 

to a live oak on a dam; 
Thence North 39y 2 degrees East 2,019 feet; 
Thence North 41 degrees West 654 feet to 

a road; 
Thence along said road in a Southwesterly 

direction 475 feet to a live oak ; 
Thence North 53% degrees West 830 feet 

on a dam to a corner of the dam; 
Thence South 39% degrees West 1,560 feet 
to the point of beginning, containing 61.7 
acres ; 
Together with the right to enter, cut and 
remove the said timber, and the timber de- 
scribed under tract 3 of Item E hereof, at any 
time on or before August 11, 1923, and with 
the right to extend the said term of removal 
for five (5) years (or until August 11, 1928) 
upon the payment of Three Hundred (300) Dol- 
lars per annum to E. P. Miller, his heirs or as- 
signs, the said timber and rights in this Item 
conveyed being the same acquired by E. V. 
Dunlevie from said E. P. Miller by deed dated 
December 31, 1908, and recorded at pages 135 
et seq. in Deed Book A-J in the office of the 
Clerk of the Superior Court of Liberty County, 
Georgia. 

H — All timber on a tract shown on the map 
as the Screven 673 acres, and known as the 



200 TIMBER BONDS 

Claybank Plantation, which 673-acre tract 

is generally described as : 

Bounded on the North by the road from 
Walthonrville to Eiceboro; on the East 
by the lands of the estate of Brewster 
Fleming; on the South by the lands of 
the estate of Ned Hargrave and Thomas 
Hargrave, the channel of the swamp 
and the Homestead Plantation, and the 
lands of Charlie Eoberts, as will more 
fully appear by a plat of 673 acres and of 
755 acres of the Mallard land adjoining, 
dated May 29, 1908, made by J. 0. Gar- 
rason, Deputy Surveyor of Liberty 
County, Georgia, 
and which 673-acre tract is more particularly 
described as follows: 

Beginning on a stake on the South side of 
the Screven road; 

Thence South 2 degrees West 6.35 chains 
to the line of the 1,500-acre Homestead 
tract, being a part of the Hilton and 
Dodge fee land; 

Thence with the line of the said Hilton 
and Dodge fee land South 2 degrees 
West 27,75 chains to a water oak on a 
dam; 

Thence South 4 degrees East 26.60 chains 
to a water oak ; 

Thence South 88 degrees East 12.40 chains 
to a ditch; 



TRUST DEEDS 201 

Thence South 10 degrees West 29.30 

chains ; 
Thence South 3 degrees West 9.50 chains 

on a dam to the center of the channel of 

Axson Swamp; 
Thence along the center of said Axson 

Swamp South 66 degrees East 1,40 

chains ; 
Thence Soath 88 degrees East 1.35 chains; 
Thence South 16 degrees East 1.90 chains ; 
Thence North 80 degrees East 8.70 chains ; 
Thence South 67 degrees East 2.60 chains ; 
Thence North 76 degrees East 4 chains ; 
Thence South 79 degrees East 7.20 chains ; 
Thence South 11 degrees West 1.60 chains ; 
Thence North 84 degrees East 4.40 chains 

to a corner in the channel of Axson 

Swamp, a cypress with ash pointers ; 
Thence leaving the line of the Hilton and 

Dodge fee lands and running North 2 de- 
grees East 33.70 chains; 
Thence South 79 degrees East 27.70 

chains ; 
Thence South 88 degrees East 42 chains ; 
Thence North 5 degrees East 33 chains to 

the Screven Road, a stake; 
Thence along said Screven road North 81 
degrees West 26.20 chains; 
Thence along said Screven road North 

78% degrees West 90 chains to the place 

of beginning, containing 673 acres. 
Together with the right to enter, cut and re- 



202 TIMBER BONDS 

move the same at any time on or before June 
5, 1923, and with the right to extend the said 
term of removal for an additional period of 
five (5) years upon the payment of One Hun- 
dred and One (101) Dollars per annum to Ed- 
ward M. Screven, Sarah L. Mallard and Wal- 
lace W. Mallard, their heirs or assigns, the tim- 
ber and rights in this Item conveyed being the 
same acquired by E. V. Dunlevie from said Ed- 
ward M. Screven, and others, by deed dated 
June 5, 1908, and recorded at pages 460 et seq., 
in Deed Book A-I in the office of the Clerk of 
the Superior Court of Liberty County, Georgia. 

I — All timber standing or lying on the tract 
shown on the maps as the 755-acre Mallard 
tract, which is generally described as : 
Bounded on the North by the lands of Sam 
Charlton, Joe Quarterman, James Por- 
ter, R. L. Page and Isaac Morrison; on 
the East by the lands of Edward Way 
and the estate of W. B. Fleming; on the 
South by the road from Walthourville to 
Riceboro, and on the West by the lands 
of Joe Quarterman, 
said 755-acre tract being more particularly de- 
scribed as follows : 

Beginning at a stake on the Screven Road ; 
being the Northeast corner of the above- 
described Screven tract of 673 acres ; 
Thence North 5 degrees East 16 chains ; 
Thence North 88 degrees East 5.70 chains ; 



TRUST DEEDS 203 

Thence North 6y 2 degrees East 20 chains ; 
Thence North 60 degrees West 16 chains ; 
Thence North 26 degrees East 36.50 

chains ; 
Thence North 70 degrees West 23 chains; 
Thence North 29 degrees East 58.75 

chains ; 
Thence South 82 degrees East 20.80 

chains ; 
Thence North 4 degrees East 7.10 chains; 
Thence South 88 degrees East 14 chains; 
Thence South 34 degrees West 22.20 

chains ; 
Thence South 60 degrees East 31.17 

chains ; 
Thence crossing a dam South 60 degrees 

East 1,210 feet to the line of the J. B. 

Way 50-acre tract; 
Thence South 30 degrees West 10 chains; 
Thence South 78 degrees West 2.90 chains ; 
Thence South 26 degrees West along a dam 

32.27 chains to a stake on a dam, the 

Southwest corner of the J. B. Way 50 

acres ; 
Thence South 28 degrees West 51.73 chains 

on a dam; 
Thence South 54 degrees West 10 chains; 
Thence South 5 degrees East 14.50 chains 

to a stake on the North side of the 

Screven road; 
Thence along said road North 81 degrees 



204 TIMBER BONDS 

West 34.55 chains to the place of be- 
ginning, and containing 755 acres ; 
Together with the right to enter, cnt and re- 
move the said timber at any time on or before 
June 5, 1923, and with the right to extend this 
term for removal for an additional period of 
five (5) years (or until June 5, 1928), upon the 
payment of One Hundred and Thirteen (113) 
Dollars and twenty-five (25) cents per annum 
to Sarah L. Mallard, Mary A. Screven and 
Wallace W. Mallard, their heirs or assigns, 
said timber and rights in this Item conveyed 
being the same acquired by E. V. Dunlevie from 
said Sarah L. Mallard and others, by deed 
dated June 5, 1908, and recorded at pages 458 
et seq., in Deed Book A-I in the office of the 
Clerk of the Superior Court of Liberty County, 
Georgia. 

J — All the timber and trees (except 75 or 80 
ornamental trees standing around the 
dwelling house and along the public 
road, which runs through this tract of 
land) on the tract shown on the map as 
the Gibson 868 acres, which is generally 
described as : 
All that tract of land on North Newport 
River and Peacock Creek near the vil- 
lage of Riceboro and known as the 
Hopewell Plantation except a right of 
way heretofore conveyed to the Florida 



TRUST DEEDS 205 

Central & Peninsula Railway Company, 
and containing 13 acres more or less. 
Also a strip of land 100 feet wide running 
parallel with and adjoining the right of way of 
the Seaboard Air Line Railway, near the 108th 
mile post of said railway, said tx*act being 
bounded as follows : 

On the North by the lands of Ham, John 
Osgood and Lambert; on the East by 
the lands of Thomas Baker and Dr. 
Samuel Way; on the South by North 
Newport River, and on the East by Pea- 
cock Creek, 
and which 868-acre tract is more particularly 
described as follows : 

Beginning at a point on Peacock Creek and 
running South 18 degrees 51 minutes 
West 9.50 chains; 
Thence South 78% degrees West 15.73 

chains ; 
Thence South 4:iy 2 degrees West 9.42 
chains to a live oak, corner on Road to 
Gibson's near junction of Sunbury 
Road; 
Thence along said road North 57 degrees 

West 88.05 chains to a corner; 
Thence South 31 degrees West 7.25 chains 
to corner on Savannah and Riceboro 
road; 
Thence along said road South 26 degrees 
East 58.80 chains to corner at fork with 
Old Landing Road; 



206 TIMBER BONDS 

Thence along said Old Landing Road 
North 85 degrees 30 minutes West 28 
chains to corner; 

Thence South 28 degrees East 41.30 chains 
to North Newport River ; 

Thence following the meanderings of said 
North Newport River in an Easterly di- 
rection to the junction with Peacock 
Creek ; 

Thence up Peacock Creek in a Northwest- 
erly direction to point of beginning, 
containing 868 acres, less 18 acres owned 
and used as a right of way by the Sea- 
board Air Line Railway, according to 
a plat of survey made by Gignilliat and 
Reppard, Civil Engineers, dated Jan- 
uary, 1909. 
By a recent re-survey the said tract of land 
is described as follows: 

Beginning at a stake on the North side of 
North Newport River about 28 chains 
West of the Savannah and Riceboro 
Road; 

Thence North 28 degrees West 41.30 chains 
to a corner on the South side of Old 
Landing Road; 

Thence along the South side of Old Land- 
ing Road South 85.30 degrees East 28 
chains to a corner in ditch by water oak 
on East side of Savannah and Riceboro 
Road; 

Thence along said east side of said road 



TRUST DEEDS 207 

North 26 degrees West 58.80 chains to a 

corner ; 

Thence North 31 degrees East 7.25 chains 

to a pine tree on the East side of the 

public road to Gibson 's ; 

Thence along said public road South 57 

degrees East 88.05 chains to a live oak; 

Thence North 4% degrees East 8.42 chains 

to a corner; 
Thence North 46% degrees West 1.90 

chains to a corner ; 
Thence North 78% degrees East 15.73 

chains to a corner; 
Thence North 23% degrees East 1.50 

chains to edge of marsh; 
Thence continuing on same line to a stake 

on South side of Peacock Creek; 
Thence following the South side of Peacock 
Creek to its junction with North New- 
port Eiver; 
Thence along the North side of North 
Newport Eiver to point of beginning, 
and containing 868 acres; 
Together with the right to enter, cut and re- 
move the said timber at any time on or before 
February 15, 1929, said timber and rights being 
the same acquired by E. V. Dunlevie from M. 
A. Gibson, by deed dated February 15, 1909, 
and recorded at pages 182 et seq., in Deed Book 
A-J in the office of the Clerk of the Superior 
Court of Liberty County, Georgia. 
K — All boxed pine trees except trees for fuel 



208 TIMBER BONDS 

and plantation purposes on the tract shown 

on the map as the Butler 89-acre tract, 

which is generally described as: 

All that certain tract of land containing 89 
acres more or less, known as Lot No. 9 
of the Lambert Plantation, and bounded 
on the North by the Savannah and Da- 
rien Eoad; on the East by the lands of 
John Baker; on the South by the lands 
of John Baker, and on the West by the 
land of D. L. Buttolph, 
and which 89-acre tract is more particularly 
described as follows : 

Beginning at a stake on the Northwest cor- 
ner of the Gibson land on the East side 
of the Biceboro Boad, and running 

Thence North 31 degrees East 8.72 chains 
to a dam; 

Thence along said dam North 54 degrees 
West 3.80 chains; 

Thence North 43% degrees East 9.68 
chains ; 

Thence North 46y 2 degrees West 11.90 
chains ; 

Thence South 35 degrees West 10.50 chains 
to the Biceboro Boad; 

Thence along said road South 26 degrees 
East 18.80 chains to the point of begin- 
ning, and containing 89 acres ; 
Together with the right to enter, cut and re- 
move the said timber at any time on or before 
November 6, 1923, and with the right to ex- 



TRUST DEEDS 209 

tend the said term of removal for an additional 
period of five (5) years (or until November 6. 
1928), upon the payment of One (1) Dollar and 
thirty-five (35) cents per annum to Shedrack 
Butler, his heirs or assigns, being the same tim- 
ber and rights acquired by E. V. Dunlevie from 
Shedrack Butler by deed dated November 6, 
1908, and recorded at pages 41 et seq., in Book 
A-J in office of the Clerk of the Superior Court 
of Liberty County, Georgia. 

L — All timber and trees of every sort and de- 
scription on five tracts of land indicated on 
the map as: 

(1) Sampson Carter 96 acres; 

(2) D. D. James 50 acres; 

(3) Charles Dix 23 acres; 

(4) Gus Quarterman 63 acres, and 

(5) D. D. James 100 acres; 

said five tracts being respectively described as 

follows : 

(1) Sampson Carter tract, lying in the Fif- 
teenth Civil District of Liberty County, 
and bounded on the North by lands for- 
merly belonging to the E. B. Way Es- 
tate; on the East by the lands of D. D. 
James; on the South by the lands of 
David James, and others, and on the 
West by the lands of the E, B. Way Es- 
tate, 

the timber on which tract is hereby conveyed 

together with the right to enter, cut and remove 



210 TIMBER BONDS 

the same at any time on or before March 12, 
1916, being the same timber and rights acquired 
by E. V. Dunlevie from Hilton & Dodge Lumber 
Co. by deed dated February 19, 1909, and re- 
corded at pages 227 et seq,, in Deed Book A-J 
in the office of the Clerk of the Superior Court 
of Liberty County, Georgia. 

(2) D. D. James 50-acre tract: 
Bounded on the North by the lands of Au- 
gustus Quarterman and the estate of E. 
B. Way; on the East by the lands of 
William Lambert; on the South by the 
lands of the estate of W. B. Fleming, 
and on the West by the lands of the es- 
tate of E. B. W T ay, 

the timber on which tract is hereby conveyed 
together with the right to enter, cut and remove 
the same at any time on or before April 4, 
1929, being the same timber and rights acquired 
by E. V. Dunlevie from D. D. James by deed 
dated February 13, 1909, and recorded at pages 
185 et seq., in Deed Book A-J in the office of the 
Clerk of the Superior Court of Liberty County, 
Georgia. 

(3) Charles Dix 23 acres, being 

All that certain tract of land containing 23 
acres more or less, known as part of the 
Bacon tract, and being in the Fifteenth 
District, and bounded on the North by 
lands formerly belonging to Jack Baker ; 
on the East by the lands of Gus Quar- 
terman ; on the South by lands formerly 



TRUST DEEDS 211 

belonging to the estate of Judge Flem- 
ing, and on the West by the lands for- 
merly belonging to the estate of Judge 
Fleming, and the estate of Jack Baker, 
the timber on which tract is hereby conveyed, 
together with the right to cut, enter and remove 
the same at any time on or before November 
7, 1923, and with the right to extend this time 
for removal for an additional time of five (5) 
years (or until November 7, 1928) upon the 
payment of fifteen (15) cents per annum to 
Charles Dix, his heirs or assigns — being the 
same timber and rights acquired by E. V. Dun- 
levie from said Charles Dix by deed dated No- 
vember 7, 1908, and recorded at pages 39 et 
seq. y in Deed Book A-J in the office of the Clerk 
of the Superior Court of Liberty County, 
Georgia. 

(4) Gus Quarterman 63 acres, being all 
that certain tract of land containing 63 
acres, more or less, bounded on the 
North and East by the lands formerly 
belonging to the Lambert Estate ; on the 
South by the lands of the estate of W. 
B. Fleming, and on the West by the 
lands of Charles Dix, the timber on 
which is hereby conveyed, together with 
the right to enter, cut and remove the 
same at any time on or before Novem- 
ber 6, 1923, and with the right to extend 
this time of removal for an additional 
period of five (5) years (or until No- 



212 TIMBER BONDS 

vember 6, 1928) upon the payment of 
seventy-five (75) cents per annum to Au- 
gustus Q. Quarterman, Ms heirs or as- 
signs, it being the same timber and 
rights acquired by E, V. Dunlevie from 
said Augustus Q, Quarterman, by deed 
dated November 6, 1908, and recorded 
at pages 37 et seq., in Deed Book A-J 
in the office of the Clerk of the Superior 
Court of Liberty County, Georgia. 
(5) D. D. James 100 acres, 
Being all that certain tract of land known 
as a part of W. E-. W. Quarterman 
Plantation, containing 100 acres, more 
or less, and bounded on the North by 
Sunbury Eoad ; on the East by the lands 
of the estate of Way; on the South by 
the lands of the estate of Mallard, and 
on the West by the lands of Isaac Mor- 
rison, the timber on which tract is here- 
by conveyed, together with the right to 
cut, enter and remove the same at any 
time on or before February 13, 1929, 
being the same timber and rights ac- 
quired by E. V. Dunlevie from David D. 
James by deed dated February 13, 1909, 
and recorded at pages 180 et seq., in 
Deed Book A-J in the office of the Clerk 
of the Superior Court of Liberty County, 
Georgia. 
Said five (5) tracts of land the timber on 
which is in this Item conveyed, are practically 



TRUST DEEDS 213 

contiguous and are more particularly described 
as follows: 

Beginning at a stake on a dam on the line 

of the Mallard 755 acres, being the 

Southwest corner of the J. B. Way 50 

acres, and running 
Thence South S2y 2 degrees East along the 

dam 1,584 feet; 
Thence South 120 feet to a dam ; 
Thence along the dam South 87 degrees 

East 1,960 feet; 
Thence along a dam North 34 degrees 

East 2,555 feet to the Sunbury Eoad ; 
Thence North 57% degrees West 1,835 

feet; 
Thence North 47 degrees West 590 feet ; 
Thence North 73 degrees West 575 feet; 
Thence North 40 degrees West about 330 

feet; 
Thence North 54 degrees West 184 feet; 
Thence North 35 degrees East 345 feet; 
Thence Northwest about 350 feet to a ditch, 

a line of the D. D. James 100 acres; 
Thence along the said lines and the ditch 

North 35 degrees East 1,479 feet to the 

Sunbury Eoad; 
Thence along the Sunbury Road North 73 

degrees West 1,270 feet to a stake on 

the South side of the Sunbury Road; 
Thence South 35 degrees West 3,430 feet 

to the line of the Mallard 755-acre tract ; 
Thence with the lines of the Mallard 755- 



214 TIMBER BONDS 

acre tract South 60 degrees East 1,210 
feet; 
Thence South 30 degrees West 10 chains ; 
Thence South 78 degrees West 2.90 chains ; 
Thence South 26 degrees West 32.27 chains 
to the place of beginning, containing 
432 acres. 
This above boundary includes the J. B. Way 
50 acres, the Eliza James 25 acres, and the 
Buckhein 25 acres, the timer on which tracts 
is not now owned by the Company, but for 
which the Company is negotiating, and this 
conveyance is intended to include and convey 
the same to the Trustees hereunder, when and 
as it may be acquired, together with any and 
all rights acquired therewith. 

M — (1) All the trees of every sort and descrip- 
tion lying on the tract shown on the map 
as the Tom Bacon 50-acre tract, which is 
generally described as: 
All that certain tract of land containing 
50 acres, more or less, bounded on the 
North by the lands of the estate of E. 
Jones; on the East by the lands of the 
estate of W. J. James ; on the South by 
the Cherry Hill Eoad, and on the West 
by the lands of D. L. Buttolph, said 
tract of land being known as part of the 
Moses Way tract, the timber on which 
tract is hereby conveyed, together with 
the right to enter, cut and remove the 



TRUST DEEDS 215 

same at any time on or before Novem- 
ber 5, 1923, and with the right to extend 
the time for removal for an additional 
time of five (5) years should the timber 
not be removed on or before said date — 
being the same timber and rights ac- 
quired by E. V. Dunlevie from Tom 
Bacon by deed dated November 5, 1908, 
and recorded at pages 35 et seq. in Deed 
Book A- J in the office of the Clerk of the 
Superior Court of Liberty County, Geor- 
gia. 

(2) All trees of every sort and description 
except trees necessary for fuel and plan- 
tation purposes on the tract shown on 
the map as the W. J. James 45-acre 
tract, and which is generally described 
as: 

All that certain tract of land containing 50 
acres, more or less, and known as part of 
the Moses Way tract, and bounded on 
the North by the lands of the estate of 
E. Jones ; on the East by the lands of the 
estate of Plenty James; on the South 
by the Cherry Hill Eoad, and on the 
West by the lands of Tom Bacon, except- 
ing therefrom five acres sold by said W. 
J. James to Shedrach Bacon, the timber 
on which tract is hereby conveyed, to- 
gether with the right to enter, cut and 
remove the same at any time on or be- 
fore November 6, 1923, with the right 



216 TIMBER BONDS 

to extend the time for removal for an 
additional term of five (5) years (or 
until November 6, 1928) upon the pay- 
ment of One Dollar and twenty cents 
(1.20) per annum to W. D. James, his 
heirs or assigns, being the same timber 
and rights acquired by E. V. Dunlevie 
from "W. D. James and others by deed 
dated November 6, 1908, and recorded 
at pages 86 et seq., in Deed Book A-J 
in the office of the Clerk of the Superior 
Court of Liberty County, Georgia. 
The above two tracts are adjoining and in- 
cluded in one general boundary, as follows: 
Beginning at a stake on the Sunbury Eoad, 
the Northeast corner of the Quarter- 
man 62-acre tract, as shown on the map ; 
Thence North 30 degrees East 3,896 feet; 
Thence South 57% degrees East 1,118 

feet; 

Thence South 30 degrees West 3,896 feet 

to the North side of the Sunbury Eoad; 

Thence along said Sunbury Eoad North 

57% degrees West, 1,118 feet to the 

point of beginning, containing 95 acres. 

All of the property and rights above con- 

veyed being the same which were conveyed to 

the Company by deed of Ernest V. Dunlevie of 

Buffalo, New York, by deed date November 16, 

1910, and recorded at pages 323 et seq., in 

Deed Book A-K, in the office of the Clerk of 



TRUST DEEDS 217 

the Superior Court of Liberty County Georgia. 
Sixth — Lands conveyed in fee: 

There is also hereby conveyed the follow- 
ing lands lying, being and situate in the 
Fifteenth District G. M. of Liberty 
County, Georgia, to wit : 

Beginning at a point on the Mcintosh 
Eoad, indicated by a star on the map 
herein included, the same likewise being 
the beginning corner of the lands de- 
scribed in Item Fifth A hereof; 

Thence along said Mcintosh Eoad North 
lSy 2 degrees East 17.80 chains; 

Thence South 83% degrees East 36.40 
chains ; 

Thence North 283/4 degrees East 25.35 
chains along said road; 

Thence North 2 degrees West 11 chains 
along said road; 

Thence due North 22.75 chains along said 
road; 

Thence North 8% degrees East 3.14 chains 
along said road; 

Thence North 403/4 degrees East 10.20 
chains along said road ; 

Thence North 311/2 degrees East 14.44 
chains along said road; 

Thence North 503/4 degrees East 8,27 
chains along said road ; 

Thence North 64% degrees East 95 links 
along said road ; 



218 TIMBER BONDS 

Thence North 863/4 degrees East 15.75 

chains along said road to a gum; 
Thence North 69y 2 degrees East 12.15 

chains along said road; 
Thence South 79 degrees East 30 chains ; 
Thence South 11 degrees West 1.40 chains ; 
Thence South 65 degrees East 35.15 

chains ; 
Thence North 11 degrees East 16.70 

chains. 
Thence South 64 degrees East 78.78 

chains ; 
Thence South 26 degrees West 21 chains ; 
Thence South 8 degrees East 10.50 chains ; 
Thence South 60 degrees East 24 chains ; 
Thence South 5 degrees West 20.40 chains ; 
Thence North 76 degrees West 39.50 

chains ; 
Thence South 29 degrees West 10.55 chains 

to a stake on the North side of the 

Screven Eoad; 
Thence South 62 degrees East 60 chains; 
Thence South 2 degrees West 27.75 chains 

on a dam to a water oak; 
Thence South 4 degrees East 26.60 chains 

to a water oak; 
Thence South 88 degrees East 12.40 chains 

to a ditch; 
Thence South 10 degrees West 29.30 

chains ; 
Thence South 3 degrees West 9.50 chains 



TRUST DEEDS 219 

on dam to center of channel of Axson 

Swamp ; 
Thence along center of said Axson Swamp 

South 66 degrees East 1.40 chains; 
Thence South 88 degrees East 1.35 chains ; 
Thence South 76 degrees East 1.90 chains ; 
Thence North 80 degrees East 8.70 chains ; 
Thence South 67 degrees East 2.60 chains ; 
Thence North 76 degrees East 4 chains; 
Thence South 79 degrees East 7.20 chains ; 
Thence South 11 degrees West 1.60 chains ; 
Thence North 84 degrees East 4.40 chains 

to a corner in channel cypress and ash 

witnesses ; 
Thence South 2% degrees West 40.65 

chains to the South side of the Eiceboro 

Road; 
Thence South 88 degrees East along said 

road 25.65 chains ; 
Thence South 7 degrees West 47 chains on 

dam; 
Thence South 88 degrees West 17.20 

chains ; 
Thence North 86 degrees West 14.25 

chains ; 
Thence North 50 degrees West 29.91 

chains to an elm ; 
Thence South 40 degrees West 13 chains 

to an elm; 
Thence North 58 degrees West 8 chains; 
Thence South 26 degrees West 14.30 

chains ; 



220 TIMBER BONDS 

Thence North 88 degrees West 2.95 chains ; 
Thence North 59 degrees West 9.80 chains ; 
Thence South 2 degrees West 21 chains 

on a dam; 
Thence North 68 degrees West 49.33 chains 

to a pine; 
Thence South '27% degrees West 56.60 

chains ; 
Thence North 66% degrees West 42.60 

chains to an oak on the North side of the 

Sandy Eun Eoad; 
Thence along said road South 49 degrees 

East 7.66 chains; 
Thence South 23 degrees West 71.50 chains 

on a dam; 
Thence South 58 degrees West 30 chains 

to a cypress ; 
Thence North 67 degrees West 5.70 chains 

to a light wood stump; 
Thence South 28 degrees W r est 19.80 

chains ; 
Thence North 22 degrees West 52.40 

chains ; 
Thence South 33% degrees West 24 

chains ; 
Thence North 83 degrees West 10.50 

chains ; 
Thence North 53.30 degrees West 30 

chains; 
Thence North 73 degrees West 40 chains ; 
Thence North 30 degrees East 5 chains; 
Thence North 73 degrees West 17,30 chains 



TRUST DEEDS 221 

to the East side of the Jonesville Road ; 
Thence along said Jonesville Road North 

16 degrees West 53.95 chains to the San 

dy Run Road; 
Thence along said Sandy Bun Road South 

87% degrees East 19.60 chains; 
Thence North 12 degrees East 11.64 

chains ; 
Thence North 50% degrees West 13.25 

chains ; 
Thence North 13y 2 degrees West 23.80 

chains ; 
Thence North 24% degrees East 48.90 

chains ; 
Thence North 4y 2 degrees East 38.88 

chains to the road leading to Allenhurst ; 
Thence North 73 degrees East 3.90 chains ; 
Thence North 2% degrees East 27.70 

chains ; 
Thence South 86 degrees East 48.87 

chains ; 
Thence North 7% degrees East 13.70 

chains ; 
Thence North 4 degrees East 21.60 chains ; 
Thence North 9 degrees East 18.90 chains ; 
Thence North 6% degrees East 19.12 

chains ; 
Thence North 66% degrees West 12.50 

chains to the Mcintosh Road and to the 

point of beginning, and containing 

10,259 acres, more or less. 



222 TIMBER BONDS 

There is excluded from the above boundary, 
however, the following tracts : 

EXCLUSION NO, 1: 
The Middleton 480-acre tract on which the 
timber has hereinabove been conveyed in Item 
Fifth D, which tract is described by metes and 
bounds as follows: 

Commencing at a pine on the Sandy Eun 

Eoad and running 
Thence North 7% degrees West 33.33 

chains ; 
Thence North 3 degrees East 45 chains; 
Thence South 81.50 degrees East 64.30 

chains to a pine ; 
Thence South 18y 2 degrees East 12.10 

chains to a light wood stump; 
Thence South &y 2 degrees East 46 chains 

to the edge of the old road to Anderson 

Plantation ; 
Thence along the North side of said road 

South 60 degrees West 34 chains to the 

Sandy Eun Eoad; 
Thence North 55 degrees West 8 chains ; 
Thence South 67 degrees West 3.40 chains ; 
Thence North 88 degrees West 28.75 chains 

to the point of beginning and containing 

480 acres; 

EXCLUSION NO. 2: 
About 225 acres made up of several small 
tracts lying along the Eiceboro Eoad, which 



TRUST DEEDS 223 

tracts are all contiguous and included in one 
general boundary, particularly described as 
follows : 

Beginning at a pine tree on the Northeast 

corner of the Middleton 480-acre tract 

(Exclusion No. 1 above), and running 

due North 12.78 chains to the Eiceboro 

Eoad; 
Thence along said Eiceboro Eoad North 

83% degrees West 56.66 chains; 
Thence North 9% degrees West 6.20 

chains ; 
Thence North 33y 2 degrees West 6.40 

chains ; 
Thence North 60 degrees West 13.80 

chains ; 
Thence North 9% degrees West 3.60 

chains ; 
Thence North 54 degrees West 12.71 

chains ; 
Thence South 43 degrees West 14 chains ; 
Thence South 22 degrees East 1.93 chains ; 
Thence South 35 degrees West 2.13 chains 

to the Eiceboro Eoad; 
Thence along said Eiceboro Eoad North 

60 degrees West 18.30 chains; 
Thence South 49 degrees West 37.50 

chains ; 
Thence South 33y 2 degrees East 16.03 

chains ; 
Thence South 503^ degrees East 6.37 

chains ; 



224 TIMBER BONDS 

Thence North 41% degrees East 23,50 

chains ; 
Thence South 81.50 degrees East 109,25 
chains to the place of beginning. 
The above tract of land in this Sixth Item 
conveyed contains nine thousand five hundred 
and fifty-four (9,554) acres, more or less, and 
is composed of the ten smallest tracts generally 
known and indicated on the map as follows: 

(1) Taylor Walthour, Buena Vista Planta- 
tion, contains 1,005 acres; 

(2) Montgomery 2,200 acres; 

(a) Russel Walthour l,242y 2 acres; 

(b) Richland Plantation of 900 acres. 

(3) Walthour Homestead of 1,500 acres; 

(4) Panama Baker Plantation, 297 acres; 

(5) Pleasant Valley Plantation of 900 
acres ; 

(6) H. R. Middleton 664 acres; 

(7) Middleton and Futch 900 acres; 

(8) The Green tract of 450 acres, known 
as the Hargrave Plantation; 

(9) Green 782 acres, known as the La- 
Grange tract; 

(10) The Howe 856 acres, known as the 
Anderson tract. 

The timber on the said 9,554 acres is the 
same acquired by E. V. Dunlevie from Hilton 
and Dodge Lumber Co. by deed dated May 28, 
1908, and recorded at pages 444 et seq., in 
Book A-I in the office of the Clerk of the Su- 
perior Court of Liberty County, Georgia, and 



TRUST DEEDS 225 

by said Dunlevie conveyed to the Company by 
deed dated November 16, 1910, and recorded 
at pages 323 et seq., in Deed Book A-K in the 
same office ; and the fee of said tract being the 
same conveyed to Edward E. Barthell, by deed 
of Hilton & Dodge Lumber Company dated 
November 16, 1910, recorded at pages 320 et 
seq., in Deed Book A-K, and by said Barthell 
to the Company by deed dated November 16, 

1910, recorded at pages et seq., in Deed 

Book in said Clerk's office. 

Also, all boilers, engines, donkey engines, 
cars, locomotives, log loaders, skidders, and all 
machinery and equipment now or hereafter 
nsed in connection with the logging operations 
of the property above described, together 
with all betterments, additions and improve- 
ments of every nature and description hereaf- 
ter placed upon said premises, or made to or 
upon said logging railroad and equipment or 
made to or upon said logging plant and equip- 
ment, and used or intended to be used in con- 
nection therewith. 

To have and to hold all and singular the 
above described property and rights, together 
with all the rights, title and interest thereunto 
belonging, and all the privileges and appur- 
tenances thereunto appertaining, together with 
all other property which by the terms hereof 
may become subject to this instrument, unto 
the said Union Trust Company and the said 
John K. Lyon, Trustees, their successors in 



226 TIMBER BONDS 

trust, and their assigns in fee simple forever. 
And the party of the first part covenants that 
it is seized and possessed of the property above 
described and conveyed in fee simple ; that the 
same is unencumbered and that it has a good 
right to convey it; and it warrants to forever 
defend the title thereto unto the said Trustees, 
their successors and assigns, against the law- 
ful claims of all persons whomsoever — 

In trust nevertheless for the purpose of se- 
curing the prompt and punctual payment of all 
and every of the bonds above described and 
of the interest coupons thereto attached, with- 
out preference or priority of one bond over an- 
other, or of bonds over coupons, or of coupons 
over bonds, with the same effect as if all of 
said bonds matured upon the same date, and 
regardless of the date or time of the issue or 
negotiation thereof; and subject to the follow- 
ing provisions, restrictions and conditions, to 
wit: 

AETICLE I. 

All of the bonds issued and certified here- 
under shall stand upon equality without regard 
to date of issue, certification, negotiation or 
delivery. Only such bonds as shall bear there- 
on endorsed the certificate of the Corporation 
Trustee or its successor hereunder, by it duly 
executed, shall be valid or obligatory for any 
purpose or shall be secured by this instru- 
ment or entitled to any lien or benefit here- 



TRUST DEEDS 227 

under, and every such certificate of said Cor- 
poration Trustee upon any bond executed in 
behalf of the Company shall be the only and 
conclusive evidence that the bond so certified 
has been duly issued hereunder and is entitled 
to the benefit of the trust hereby created and no 
holder of any bond issued hereunder which 
shall be so certified by said Corporation Trus- 
tee shall be under the duty to ascertain whether 
the same shall have been duly issued, certified 
or delivered, according to the provisions hereof. 

The entire issue of said bonds shall be exe- 
cuted by the Company and at once certified and 
delivered by said Corporation Trustee to the 
President of the Company or to such person 
or persons as the Board of Directors of the 
Company by its resolution may designate. 

Upon certifying or delivering any bond un- 
der this mortgage or deed of trust all coupons 
thereon then matured shall be detached and 
cancelled by the Corporation Trustee and de- 
livered to the Company. 

In case the officers who shall have signed 
and sealed any of the bonds aforesaid shall 
cease to be such officers of the Company before 
the bonds so signed and sealed shall have been 
actually certified and delivered by the Corpora- 
tion Trustee, or issued, such bonds may never- 
theless be issued, certified and delivered as 
though the persons who had signed and sealed 
such bonds had not ceased to be officers of said 
Company. 



228 TIMBER BONDS 

Interest coupons shall be authenticated by 
the engraved fac-simile signature of the pres- 
ent Treasurer of the Company, and the Com- 
pany may adopt and use said coupons, notwith- 
standing the fact that the present Treasurer 
may have ceased to hold such office at the time 
when said bonds, or some portion thereof, shall 
be actually certified and delivered. 

The Trustees shall not be bound to see to 
the application, use or disposition of any of 
the bonds secured hereby, or of the proceeds 
thereof. 

AETICLE II. 

Any bond secured hereby shall pass by de- 
livery unless registered, but it may be regis- 
tered as to principal in the holder's name on 
the books of the Union Trust Company, Eeg- 
istrar, at its office in the City of Chicago, Illi- 
nois, such registry being noted on the bond by 
said Eegistrar, after which only such registered 
holder, or the legal representative of such 
holder, shall be entitled to receive the principal 
thereof; and no transfer shall be valid unless 
made on said Eegistrar 's books by the regis- 
tered holder of the bond in person or by the 
legal representative of such holder and simi- 
larly noted on the bond; but the bond may be 
discharged from registry by registration to 
bearer, after which it shall be transferable by 
delivery. It may be registered again, however, 
in the manner above provided. 



TRUST DEEDS 229 

The registry of any bond shall not impair 
the negotiability of the coupons, but the same 
shall continue to be transferable by delivery 
notwithstanding such registration. 



AETICLE III. 

In case any bond issued under this instru- 
ment or the coupons thereto appertaining, shall 
become mutilated, lost or destroyed, the Com- 
pany in its discretion may issue and thereupon 
the Corporation Trustee shall certify and de- 
liver a new bond of like date, tenor and amount, 
bearing the same number as the one mutilated, 
lost or destroyed, in exchange for and in place 
of and upon the cancellation of the mutilated 
bond or coupons, or in lieu of and substitution 
for the same, if lost or destroyed. In such 
case the applicant for such new or substituted 
bond shall bear the expense of furnishing the 
same. 

The Company shall not be required to issue 
nor the Corporation Trustee to certify a new 
bond in lieu of any bond alleged to have been 
lost or destroyed unless the applicant for such 
new bond shall first furnish evidence of such 
loss or destruction, and indemnity against its 
subsequent presentation as an obligation of 
the Company, which evidence and indemnity 
shall be satisfactory to both the Company and 
the Corporation Trustee, in their discretion. 



230 TIMBER BONDS 

AETICLE IV. 

Southern Timber Company agrees and cove- 
nants that it will duly and punctually pay, or 
cause to be paid, to every holder of any bond 
issued hereunder, and secured hereby, the 
principal and interest accrued thereon, all in 
gold coin of the United States of America of 
the standard of weight and fineness existing 
on the nineteenth day of November, 1910, not- 
withstanding any law which may now or here- 
after make anything else a legal tender in pay- 
ment of debts, at the dates and place, and in the 
manner mentioned in said bonds or in the cou- 
pons thereto appertaining, according to the 
true intent and meaning thereof, and without 
deduction from either the principal or interest 
for any tax, or taxes, or assessments, or other 
governmental charges which may be imposed 
thereon, or which the Company may be requir- 
ed or permitted to pay or to deduct or retain 
therefrom under or by reason of any present 
or future law of the United States, or of any 
State, county or municipality thereunder. 

However, the interest on said bonds shall be 
payable only upon the presentation and sur- 
render of the respective coupons annexed to 
said bonds, as such coupons respectively ma- 
ture and when and as paid all the coupons shall 
forthwith be cancelled and delivered to the 
Company. 

And the Company agrees promptly, and in 



TRUST DEEDS 231 

time to prevent any sale or forfeiture of the 
mortgaged premises or any part of the same on 
account thereof, to pay, or cause to be paid, 
all taxes, assessments and governmental 
charges which shall from time to time be le- 
gally imposed, assessed or levied, upon or 
against the property hereby conveyed, or upon 
any part thereof, or upon the profits or in- 
come thereof, or upon or against the Company, 
and to pay or cause to be paid any tax, judg- 
ment or other encumbrance, the lien whereof 
might be held superior to the lien of these pre- 
sents, upon the property hereby conveyed or 
upon any part thereof, so that the priority of 
these presents shall at all times be fully main- 
tained and preserved; provided, however, that 
the Company may, with the consent of the Cor- 
poration Trustee thereto first had and obtained 
in writing, resist in any legal way the payment 
of any tax, assessment or charge upon said 
property hereby conveyed, or any part thereof, 
which the Company may deem unjust, illegal 
or unauthorized. And the Company agrees to 
do on demand of the said Trustee, or its suc- 
cessors, all acts necessary or proper to keep 
valid the lien hereby created or intended to be 
created; and at any future time and as often 
as it may be necessary to execute or cause to be 
executed on demand of said Trustee, or its suc- 
cessor or successors, all such other and addi- 
tional conveyances, deeds, mortgages, or other 
instruments in writing, in due form and effect, 



232 TIMBER BONDS 

as may be proper to the better carrying out of 
the true intent and meaning of these presents. 

And the Company further covenants and 
agrees that it will not cut nor permit to be cut 
any timber from the premises hereunder mort- 
gaged, nor any timber hereunder mortgaged, 
nor extract anything from or deaden the said 
timber, or any portion thereof, nor permit the 
same to be done, nor permit any waste or other 
change in the property hereby mortgaged, or 
any portion thereof, except as is herein other- 
wise expressly provided, but that it will dili- 
gently preserve and protect the same. 

In case the Company shall fail to promptly 
pay or cause to be paid any tax, assessment or 
other charge as provided for therein, either of 
the Trustees may pay the same (but shall not 
be under any obligation whatsoever so to do), 
in which event such Trustee shall be subrogated, 
either with or without an act, writing or other 
instrument to that effect, to the rights and de- 
mands of the State, county, city, town or other 
municipality, as the case may be ; and in addi- 
tion thereto the amount thus expended, togeth- 
er with interest thereon at the rate of six per 
centum per annum, shall be a charge on the 
property hereby conveyed prior to the lien of 
the bonds hereby secured. 

The Company covenants that its logging rail- 
road, equipment and appurtenances, and its 
logging plant, equipment and appurtenances 
will be kept in repair and maintained in good 



TRUST DEEDS 233 

working order and condition, and if worn out 
or injured will be replaced by other property 
suitable to the business for which it is now 
used, and of at least equal value, and that such 
logging railroad, equipment and appurtenances 
and such logging plant, equipment and ap- 
purtenances shall not be removed from the 
mortgaged premises without the consent of the 
Trustees hereunder. 

The Company covenants that it will keep 
proper books of record and account showing 
full, true and perfect entries of all dealings 
or transactions of or in relation to the plants, 
properties, business and affairs of the Compa- 
ny, and which shall at all times be open to the 
inspection of the Trustees or either of them, 
and of Lyon, Gary & Company, an Illinois 
corporation, or of their respective successors 
hereunder ; and that whenever requested either 
by the Trustees or by Lyon, Gary & Company, 
or their respective successors, the Company 
shall and will furnish complete statements 
showing its financial condition, together with 
such other information bearing on the security 
of the bonds as may be requested. 

So long as there shall be no default in any 
of the covenants in this instrument contained, 
the Company shall continue in the possession 
of all the property embraced herein, and hereby 
conveyed to the Trustees. 



234 TIMBER BONDS 

AETICLE V. 

In order to prevent any accumulation of 
bonds or coupons after their maturity, the 
Company covenants and agrees that it will not 
directly or indirectly extend or assent to the 
extension of the time for payment of any of 
the bonds or of any coupons of any of the 
bonds secured hereby, by purchase or funding 
of such bonds or coupons or by any other ar- 
rangement unless and except such extension 
shall be subject to the terms of this article. In 
case the time for payment of any such bond 
or coupon shall be so extended, whether or not 
such extension be with or by the consent of the 
Company, such bond or coupon shall not be 
entitled, in case of any default hereunder, to 
the benefit or security of this mortgage, ex- 
cept subject to the prior payment in full of the 
principal of all bonds issued hereunder then 
outstanding, and of all matured coupons and 
accrued interest thereon, and of all other ac- 
crued interest on such bonds the payment of 
which has not been so extended. 

AETICLE VI. 

The number first having been selected by 
lot by the Corporation Trustee, any outstand- 
ing bond issued hereunder may be redeemed 
and paid by the Company at the place of pay- 
ment of said bonds on any interest payment 
date, upon payment of the principal of said 



TRUST DEEDS 235 

bond and interest due thereon at the date of 
such redemption, together with a premium of 
three (3) per centum on the principal thereof. 
Such selections shall in every case be made 
from the bonds first maturing, no bond being 
subject to selection for redemption until all 
bonds of prior maturities have either been paid 
or selected for redemption. In case of an elec- 
tion to redeem any of the bonds issued here- 
under before maturity and a selection pursuant 
to such election either the Company or the 
Corporation Trustee shall publish a notice of 
such election to redeem and the selection there- 
under once a week for four successive weeks 
(the first of such publications to be not less 
than ninety days previous to the date of re- 
demption) in some newspaper of general cir- 
culation published in the City of Chicago, 
State of Illinois, which notice shall state the 
numbers' of the bonds selected as above to be 
redeemed, and the date when the bonds so se- 
lected shall be due and payable under such re- 
demption. All bonds so designated for re- 
demption shall become due and payable on the 
date given in such published notice, and shall 
from such date cease to draw interest, pro- 
vided that at or prior to such date there shall 
have been deposited with the Corporation 
-Trustee the proper amount of money for the 
redemption of said bonds so designated for re- 
demption. Upon the deposit with the Corpora- 
tion Trustee of the proper amount of money 



236 TIMBER BONDS 

for the redemption of any bond or bonds so 
designated the Company and the Trustees may 
be privileged to consider such bond or bonds 
as paid and cancelled, and the Company shall 
be nnder no further obligation to the holder or 
holders of such bond or bonds; nor shall the 
Trustees be further liable or under obligations 
to such holder or holders except for the mon- 
eys deposited in redemption of such bonds, to 
be paid without interest upon their surrender. 

AETICLE VII. 
Subject to the right of suspension or revo- 
cation as provided in Article IX hereof and so 
long as the Company shall not be in default in 
the payment of any of the bonds or interest 
coupons secured hereby, or in the payment of 
taxes or other governmental assessments or 
charges as provided in this mortgage, or in 
the performance of any of the other covenants 
herein contained on its part to be performed, 
the Trustees shall and are hereby authorized 
to release unto the Company and to permit the 
Company to cut and remove free from the lien 
of this mortgage, or deed of trust, any of the 
timber shown on the "Estimated Stumpage 
List" hereinafter referred to, and conveyed 
hereby, or the timber on any or all of the lands 
shown on said "Estimated Stumpage List" 
and conveyed hereby, which the Company may 
select, when the Company shall have first paid 
to the Corporation Trustee Five (5) Dollars 



TRUST DEEDS 237 

per thousand feet on the estimated stumpage 
for the timber on each description or group 
of descriptions which the Company then desires 
the right to cut, as the estimated stumpage 
thereon is shown on a list called "Estimated 
Stumpage List," signed in triplicate by the 
Company, by the Corporation Trustee and by 
said Lyon, Gary & Company; and one original 
of which list is deposited with each of the sig- 
natories thereto. Consideration for the privi- 
lege of obtaining such releases may be given 
by the Company in any of the following three 
ways : 

(a) By payment in cash. 

(b) By delivery to the Trustees of any 
of the bonds hereby secured and then out- 
standing, which it may have acquired; in 
which case, for the purpose of obtaining 
releases the amount of the principal of 
such bonds so delivered shall be treated 
the same as if a like amount had been paid 
to the Trustees in cash. 

(c) By payment of any of the bonds se- 
cured hereby — treating only the amount of 
principal paid as a consideration for re- 
leases. 

In the event that the Company shall acquire 
and deliver bonds to the Trustees, as provided 
in paragraph (b) above, the Trustees shall 
cancel the said bonds so delivered and forming 
the consideration or part of the consideration 
for such releases and also the coupons attached 
thereto. 



238 TIMBER BONDS 

The Trustees shall keep a list of the numbers 
of all bonds so used for the purpose of secur- 
ing releases of portions of the timber and shall 
indicate on each such bond that it has been so- 
used, together with the date of such use. 

All money received by the Corporation Trus- 
tee under this Article shall be used for the re- 
tirement of bonds secured as provided in Arti- 
cle VI hereof. 

The Company reserves the right to cut and 
remove free from the lien hereof, without 
paying therefor as above provided, the timber 
from group No. on said Estimated Stump- 
age List, the timber so cut and removed to 
aggregate not more than two million feet. 

The Company may enter upon any land from 
which the timber has been so released and may 
conduct logging operations thereon as it may 
desire ; and the Company may also, at its pleas- 
ure, remove any logging railroad or other 
property which it may place on such land. 

ARTICLE VIII. 

In case before the payment in full of all 
the bonds hereby secured with interest thereon, 
any timber hereby mortgaged or the timber on 
any portion of the premises hereby mortgaged 
(except as may have been theretofore released 
under the provisions of this instrument) shall 
be injured or damaged by the action of fire, 
or by wind or the elements to an extent suf- 



TRUST DEEDS 239 

ficient in the opinion of the Trustees or of 
Lyon, Gary & Company, to appreciably affect 
the value of the same as security for the pay- 
ment of the bonds and coupons then outstand- 
ing, the Company shall within ninety days after 
the extent of such loss shall be determined, 
pay to the Corporation Trustee for the benefit 
of the bondholders the sum of Five (5) Dol- 
lars per thousand feet stumpage on the timber 
so injured or damaged, the land description on 
which the timber has been injured or damaged 
being ascertained by investigation under di- 
rection of the Trustees, and the amount of tim- 
ber thereon, on which the payments of Five (5) 
Dollars per thousand feet shall be made as 
above expressed, being determined by the esti- 
mates made by a cruiser to be selected by the 
Trustees with the written approval of said 
Lyon, Gary & Company, the expense of ascer- 
taining such land description and the amount of 
timber so damaged, to be borne by the Compa- 
ny and to be a charge against the property 
herein described, and secured by this mort- 
gage. 

AETICLE IX. 

While the Company shall not be in default 
in the performance of any of the covenants in 
this instrument contained, it may from time to 
time, subject to the conditions hereinafter stat- 
ed, sell free from the lien of this instrument 
any of the property hereunder mortgaged, upon 



240 TIMBER BONDS 

the payment in cash of snch sum or sums of 
money as the Company, the Trustees and Lyon, 
Gary & Company may agree upon; provided 
that if timber is sold it shall not be at a less 
price than five (5) dollars per thousand feet 
stumpage, and if land shall be sold it shall not 
be sold at a less price than five (5) dollars 
per thousand feet for the timber that may be 
thereon. 

Either the Trustees or Lyon, Gary & Com- 
pany may in their discretion cause such in- 
vestigation to be made either of the amount 
of timber on the property proposed to be sold 
or of the desirability of permitting or approv- 
ing of any proposed sale or sales of the proper 
ty or any part thereof as they may see fit, the 
expense of which investigation shall be paid 
by the Company. The Trustees shall execute 
such instrument as may be necessary to release 
from the lien of this mortgage any property 
sold according to the provisions of this Article. 

And always further provided, however, that 
the right of the Company to sell the land or 
any portion of the same, or the timber or any 
portion of the same as is in this Article pro- 
vided, may be suspended or revoked by the 
Trustees with the concurrence of Lyon, Gary 
& Company, in case of litigation arising over 
or affecting or involving questions affecting or 
which may affect the title to as much as 500 
acres of the land embraced herein, or the tim- 
ber on as much as 500 acres; said suspension 



TRUST DEEDS 241 

or revocation being optional with the Trustees 
and Lyon, Gary & Company, and if the right 
is exercised, the same shall remain in effect 
until some satisfactory settlement of such liti- 
gation, or until other arrangement is made 
with reference thereto, which is satisfactory to 
them in their discretion. 

The proceeds of the sale of any portion of 
the property covered hereby (that is, the gross 
amount of sale less reasonable commissions 
anrl expense connected with such sale) shall be 
paid and turned over to the Corporation Trus- 
tee, and shall be treated by the Trustees in like 
manner and used by them for the same purpose 
as are the payments provided for in Article 
VII hereof. 

Neither the Trustees nor Lyon, Gary & Com- 
pany, shall be under any liability for anything 
done (or omitted to de done) by them respect- 
ively in good faith hereunder. 

ARTICLE X. 

All sums of money paid to the Trustees by 
the Company for the release of any portion of 
the timber hereby mortgaged, in accordance 
with any Article hereof, and all other sums 
which may come into the hands of the Trus- 
tees for the benefit of the holders of the bonds 
issued hereunder, shall be applied by the Trus- 
tees from time to time to the purchase of out- 
standing bonds issued hereunder at such prices 



242 TIMBER BONDS 

as may be agreed upon by the Company and 
the Trustees. If none of the bonds secured 
hereby can be so purchased, the Trustees in 
the manner provided in Article VI hereof shall 
by lot select bonds to be redeemed to an amount 
sufficient to approximately exhaust the funds 
so held by them; after which the bonds so se- 
lected shall in all things be subject to the pro- 
visions of Article VI hereof and redeemable 
in the manner therein provided; such redemp- 
tion to be made on the first interest payment 
date occurring ninety days or more after the 
receipt of such funds by the Trustees. 

No bond which may be paid, bought or re- 
deemed under this or any other Article hereof 
shall be reissued, but the same shall be can- 
celled by the Trustees and delivered to the 
Company for preservation. 

ARTICLE XI. 

All moneys which may be received as com- 
pensation for any property or right of the 
Company which may be taken by the exercise 
of the power of eminent domain or expropria- 
tion shall be paid to the Corporation Trustee 
and used for the retirement of bonds secured 
herein in accordance with Article VI or Arti- 
cle X hereof, excepting that if such condemna- 
tion or expropriation proceedings shall be de- 
fended by the Company its reasonable ex- 
penses and attorney's fees in making such de- 



TRUST DEEDS 243 

fense shall be deducted from any award and 
only the surplus paid over to the Corporation 
Trustee as herein provided. 

But the Company shall not be entitled to 
have the release of any property covered here- 
by on account of bonds purchased with money 
coming through condemnation or expropria- 
tion proceedings. 

ARTICLE XII. 

If the Company or its successors or assigns 
shall well and truly pay or cause to be paid 
to the holders thereof the principal of all bonds 
secured hereby, or intended so to be, and the in- 
terest moneys to become due thereon respect- 
ively, at the time and in the manner specified 
in the said bonds and coupons, without deduc- 
tion for United States, State, County, Munici- 
pal or other tax or taxes, or assessments, or 
other governmental charges which the Compa- 
ny may be required or permitted to pay or 
retain therefrom by any present or future law, 
according to the true tenor and effect thereof, 
or if at any time the Company shall acquire 
and cancel all of the bonds and interests cou- 
pons secured hereby, and pay off and discharge 
all obligations incurred hereunder including 
the payment of the reasonable charges and ex. 
penses of the Trustees, then these presents 
and the trusts hereby created, and all the es- 
tate, right title and interest hereby vested in 
the said Trustees, their successors and assigns, 



244 TIMBER BONDS 

in the property hereby conveyed shall cease 
and determine, as fnlly as if this mortgage had 
never been executed ; and in that case, although 
it may not be necessary, yet the said Trustees 
or their successors in the trust, upon demand 
of the Company and the cancellation of the 
bonds and coupons hereby secured, shall and 
will execute and deliver to the Company all 
such instruments as may be necessary or rea- 
sonably requested to discharge and cancel this 
mortgage of record. 

AETICLE XIII. 

The Trustees shall have the right at any 
time in their discretion, but not oftener than 
once in six months, except in case the timber 
has been damaged by fire or the other ele- 
ments, then in which case, as often as in the 
opinion of the said Trustees and of Lyon, Gary 
& Company, it may be necessary, to cause an 
inspection of the lands and timber herein con- 
veyed to see whether the property mortgaged 
hereunder has suffered any damage, .or been 
trespassed upon, or whether there has been any 
unauthorized use of the timber or of the prem- 
ises hereby conveyed or of the timber thereon ; 
and the expense of any such investigation shall 
be borne and paid by the Company, but the 
Trustees shall not be required to have such an 
examination made unless upon the written re- 
quest of the holder or holders of some one or 
more of the bonds secured hereby and then 



TRUST DEEDS 245 

outstanding, together with the written concur- 
rence of Lyon, Gary & Company thereto, and 
unless such bondholder or bondholders first ad- 
vance or pay to the Trustees the estimated cost 
of such inspection. 

AETICLE XIV. 

If default shall be made in the payment of 
the principal of any of said bonds or in the pay- 
ment of any interest money mentioned in said 
bonds or coupons, or any or either of them, 
when the same becomes due, or if the Company 
shall cut timber situate upon the mortgaged 
premises or any part thereof or cut any of the 
timber mortgaged hereunder, or suffer any of 
the same to be cut, otherwise than as herein 
provided, or permit any other waste of the 
mortgaged property, or shall fail to perform 
any other of the covenants in this mortgage or 
deed of trust contained, on its part to be per- 
formed, or to cause to be performed, and if 
such default shall continue for a period of sixty 
days, the Trustees may, and if thereunto re- 
quested in writing by the holders of ten (10) 
per centum in interest of the said bonds then 
outstanding, shall declare the principal of all 
the bonds hereby secured then outstanding to 
be, and the same shall thereupon become, im- 
mediately due and payable, anything contained 
in said bonds or herein to the contrary not- 
withstanding. 



246 TIMBER BONDS 

ARTICLE XV. 

If default shall be made in the payment of 
any bond or coupons when the same become 
due (whether such default shall have continued 
for the period of sixty days or not), or if de- 
fault be made in the payment of taxes, as is 
herein provided, and such default shall con- 
tinue for the period of sixty days, the Trus- 
tees may, and upon the request in writing of 
the holders of ten (10) per centum in interest 
of the bonds and coupons then outstanding, and 
upon being indemnified to their satisfaction for 
any expenses and liabilities which they may 
incur, shall, as the agents and attorneys in fact 
of the Company herein, enter into and take 
full possession of the lands and all other prop- 
erty hereby mortgaged (except such as may 
have been theretofore released under the pro- 
visions of this instrument) and hold, use, man- 
age, maintain and operate the same ; collect and 
receive all moneys and revenues arising from 
such management and operation, and apply the 
same, first to the expenses of such operation, 
including reasonable compensation for their 
own services and for the services of their 
counsel, attorneys, agents and servants; sec- 
ond, to the maintenance, management and op- 
eration of the property, including the payment 
of taxes, assessments and other governmental 
charges, and, third, to the payment pro rata of 
any amount, principal or interest, that may be 



TRUST DEEDS 247 

due and in default upon said bonds, together 
with interest on overdue installments of in- 
terest, but not to the payment of any bond or 
coupon the time for payment of which may 
have been extended. In case all of the said pay- 
ments shall be made in full, the Trustees after 
making such provisions as they may deem ad- 
visable for the next semiannual installment of 
interest and principal, shall restore to the 
Company the possession of the premises hereby 
conveyed. This power of entry may be exer- 
cised as often as occasion therefor shall arise 
pending the trust; and this power of attorney 
is and shall be irrevocable. 



AETICLE XVI. 

In case (1) default shall be made in the due 
and punctual payment of any interest on any 
bond hereby secured, and any such default 
shall continue for a period of sixty days ; or in 
case (2) default shall be made in the due and 
punctual payment of the principal of any bond 
hereby secured; or in case (3) the Company 
shall cut timber situate upon said mortgaged 
premises or any timber mortgaged hereunder 
or suffer the same to be cut otherwise than is 
herein provided and such default shall con- 
tinue for a period of sixty days; or in case (4) 
default shall be made in the due observance 
or performance of any other covenant, condi- 
tion or agreement herein required to be kept 



248 TIMBER BONDS 

or performed by the Company and such de- 
fault shall continue for a period of sixty days, 
then and in every such case the Trustees, or 
either of them, (a) may enter upon and take 
possession of the mortgaged property or any 
part thereof, collect and receive all rents, is- 
sues, income and profits therefrom and operate 
and conduct the business of the Company to 
the same extent and in the same manner as 
the Company might do; (b) may cause this 
mortgage to be foreclosed and the mortgaged 
property, or any part thereof, to be sold; (c) 
may proceed to protect and enforce the rights 
of the Trustees and the bondholders hereunder 
whether for specific performance of any cove- 
nant, condition or agreement herein contained 
or in aid of the execution of any power herein 
granted or for the enforcement of such other 
appropriate legal or equitable remedy as may, 
in the opinion of counsel, be most effectual to 
protect and enforce the rights aforesaid; (d) 
shall be entitled as of right without notice to 
the appointment of a receiver of the mortgaged 
property, or any part thereof, and the Com- 
pany does hereby irrevocably consent to such 
appointment; or (e) in addition to the reme- 
dies above provided, the Company hereby ir- 
revocably appoints and constitutes said Trus- 
tees or either of them, or their successors, or 
either of them, the attorney in fact for the Com- 
pany, and in its name, place and stead, and 
hereby authorizes and empowers said attorney 



TRUST DEEDS 249 

or attorneys in fact, without resort to legal 
proceedings, and without order of any court, 
to sell said property hereinbefore described, 
or any part thereof, at public outcry, either 
for cash, or part cash and part on deferred 
payments, or on any other terms deemed best 
by the said attorney or attorneys in fact, and 
in the usual manner of trustees' sales (at which 
sale the Company shall have the right to pur- 
chase), and to execute a conveyance or con- 
veyances of the property or any portion there- 
of, and of the equity of the Company therein; 
this appointment of said attorney or attorneys 
in fact, being coupled with an interest, is and 
shall be irrevocable, and any corporation or 
person, successor to either or both of the Trus- 
tees herein named, shall succeed such Trustee 
as attorney in fact and be clothed with all the 
rights and powers conferred by this instru- 
ment upon the attorney or attorneys in fact 
herein appointed. 

AETICLE XVII. 

The Company covenants that it will not ap- 
ply for nor avail itself of any injunction nor 
of any stay proceedings, nor plead, nor in any 
way take advantage of any valuation law, ap- 
praisement law, stay law, or any other law, 
whether now in force or which may hereafter 
be enacted, which may in any way alter, im- 
pair or impede the rights or remedies of the 
holders of the bonds issued hereunder, or of the 



250 TIMBER BONDS 

Trustees as herein provided, or which shall af- 
fect or change the time, place, means or mode 
of perfecting or enforcing such rights or rem- 
edies and it hereby expressly waives all bene- 
fit and advantage of any and all such laws. 

AETICLE XVIII. 

Upon any foreclosure sale of the property 
hereby mortgaged, or any part thereof, the 
purchaser, in making payment therefor, shall 
be entitled, after paying in cash so much as 
shall be necessary to cover the cost and ex- 
penses of the sale and of the proceedings inci- 
dent thereto, and all other charges that may be 
decreed to be paid in cash, to appropriate and 
use toward the payment of the remainder of 
the purchase price any of the bonds or cou- 
pons issued hereunder, and entitled to partici- 
pate in the proceeds of such sale, reckoning 
each bond or coupon so appropriated and used 
at such sum as shall be payable thereon out of 
the net proceeds of the sale; and proper re- 
ceipts thereupon be given to the holders of such 
bonds or coupons for the amount so payable 
thereon, and the bonds and coupons, if the net 
proceeds of the sale shall be sufficient to pay 
them in full, shall be delivered up to the person 
making the sale, whether under the decree of 
the court or otherwise, for cancellation; or if 
the proceeds of the sale shall not be sufficient 
to pay such bonds or coupons in full, then prop- 
er endorsement shall be made thereon of the 



TRUST DEEDS 251 

amount so paid and they shall then be re- 
turned to the holders. 

AETICLE XIX. 

Upon any foreclosure sale of the property 
hereby mortgaged the property shall be sold 
either as a whole or in parcels at the option of 
the Trustees conducting the foreclosure pro- 
ceedings; and if in parcels the same shall be 
divided as shall be considered for the best in- 
terests of the bondholders by the said Lyon, 
Gary & Company, as may be evidenced in writ- 
ing addressed to the Trustees or to the Court; 
or in case of such foreclosure sale the property 
may at the option of the Trustees be offered 
first by parcels designated as above, and then 
as a whole, that offer producing the highest 
price for the entire property to prevail — any 
law statutory or otherwise to the contrary not- 
withstanding. And the Company hereby ex- 
pressly waives the right to require any such 
sale to be made by the acre, or in parcels, or 
the right to select such parcels. 

In case of a foreclosure of this mortgage or 
deed of trust the proceeds shall be applied: 

First, to the payment of all expenses of pro- 
tecting and enforcing this trust, including rea- 
sonable compensation to the Trustees, and all 
expenses incurred by them in connection here- 
with, and including reasonable attorney's fees 
for any service that may be rendered either in 
protecting this trust or enforcing the same. 



252 TIMBER BONDS 

Second, to the payment pro rata of all the 
bonds and interest coupons secured hereby 
without preference of bonds over coupons or 
coupons over bonds, subject, however, to the 
provisions of Article V hereof; but only cou- 
pons that have matured and the earned por- 
tion of those next maturing shall be entitled 
to participate in such proceeds ; and, 

Third, the balance, if any there be, shall be 
paid to the Company or its order. 

In case any foreclosure sale of the premises 
hereby mortgaged should fail to realize suf- 
ficient funds for the payment in full of the 
entire debt hereby secured, including all au- 
thorized expenses, court costs, attorneys' fees, 
et cetera, the balance remaining unpaid shall 
be and remain a valid, subsisting and enforcea- 
ble obligation of and against the Company, and 
a deficiency judgment against the Company 
may be taken thereon, and the Court may di- 
rect in the decree of foreclosure of this mort- 
gage that any balance which may remain un- 
satisfied after the sale of the mortgaged prem- 
ises, and the application of the proceeds of said 
sale toward the payment of the mortgage in- 
debtedness, together with costs and interest, 
shall be satisfied from any other property of 
the Company. 

In case the proceeds of foreclosure sale of 
the premises hereby mortgaged should be in- 
sufficient to satisfy in full the mortgage debt 
hereby secured and then existing, together 



TRUST DEEDS 253 

with costs, attorneys' fees, and expenses of 
foreclosure and sale, then and in such event the 
Trustees herein named, or any successors to 
such Trustees, are hereby authorized to com- 
mence suit against the Company in any court 
of record (State or Federal) having jurisdic- 
tion of the amount involved, in any State or in 
any Judicial Circuit or District of the United 
States, and the then President of the said Lyon, 
Gary & Company is hereby irrevocably ap- 
pointed the attorney in fact of the Company 
to enter the appearance of the Company in said 
suit, in which suit the said Trustees shall be 
entitled to judgment against the Company for 
the full amount of such deficiency, with in- 
terest at the rate of six per cent per annum, 
together with court costs and attorneys' fees, 
as aforesaid, and in any suit upon such judg- 
ment or upon any renewal thereof, to recover 
the amount of such judgment or the renewal of 
such judgment, such President is likewise au- 
thorized to enter the appearance of the Com- 
pany and the Trustees are authorized to take 
judgment for the amount of said original judg- 
ment or renewal thereof together with interest 
thereon at the rate aforesaid, costs of court 
and attorneys' fees; and it is agreed that this 
clause shall be deemed a separate and inde- 
pendent clause of this instrument, and shall be 
treated and deemed as a contract entered into 
between the parties hereto to be governed by 
the laws of the State of Illinois to the same 



254 TIMBER BONDS 

effect as if this instrument had been entered 
into in said State and were to be performed 
there. 

AETICLE XX. 

Except as may be herein expressly provided 
to the contrary, no right or remedy herein con- 
ferred npon or reserved to the Trustees shall 
be, or is intended to be such right or remedy 
herein provided shall be cumulative, and shall 
be in addition to every other right or remedy 
given hereunder, or now or hereafter existing 
at law or in equity or by statute; and every 
power and remedy given by this instrument to 
the Trustees may be exercised from time to 
time as often as may be deemed expedient. No 
delay or omission of the Trustees or bondhold- 
ers to exercise any right or power, arising from 
any default, shall impair any such right or 
power, or shall be construed to be a waiver 
of any such default or an acquiescence therein. 

AETICLE XXI. 

Every holder of any of the bonds secured 
hereby accepts the same subject to the express 
understanding and agreement that every right 
of action, whether at law or in equity, under 
this instrument, is vested exclusively in the 
Trustees, and under no circumstances shall the 
holder of any bonds or coupons, or any num- 
ber of such holders, have any right to institute 
any action at law or any suit or proceeding in 



TRUST DEEDS 255 

equity, or otherwise, under this instrument, or 
upon any bond or coupon secured hereby, for 
the purpose of enforcing any covenant or rem- 
edy herein or in said bonds or coupons con- 
tained, or to foreclose this mortgage, except in 
case of refusal on the part of the Trustees to 
comply with any duty imposed on them in re- 
spect of any such covenant or foreclosure after 
demand by the holder or holders of such bonds 
or coupons and the production of such bonds 
or coupons by the holder thereof to the Trus- 
tees, or the furnishing by such holders of oth- 
er evidence satisfactory to the Trustees that 
they are such holders, and the giving to the 
Trustees of indemnity satisfactory to them, 
securing them against liability by reason of 
the action requested; but no inaction by said 
Trustees upon any such request shall be deemed 
a refusal until after the expiration of a 
reasonable time and not less than twenty (20) 
days for the consideration thereof by said 
Trustees. 

In every case in which the Trustees are au- 
thorized or required, under any provision of 
this instrument, to take any action upon the 
request of the holders of said bonds, the Trus- 
tees shall have the right to require the person 
or persons presenting such requests to furnish 
proof as to the ownership of such bonds as 
may be presented by him or them, by affidavit 
or other evidence satisfactory to the Trustees; 
and if such proof be so required, the said re- 



256 TIMBER BONDS 

quest shall be without effect until such proof 
shall be furnished. 

AETICLE XXII. 

The Trustees herein named, or either of 
them, may resign or discharge themselves of 
and from the trust hereby created, by notice 
in writing to be given to the Company and pub- 
lished once a week for two consecutive weeks 
in a paper of general circulation published in 
the said City of Chicago, at least thirty days 
before such resignation shall take effect, or 
such shorter time as the party of the first part 
may accept as sufficient notice ; but such resig- 
nation shall take effect immediately upon the 
appointment of new Trustees herein in place 
of the Trustees resigning if such new Trustees 
shall be appointed before the time limited by 
such notice. 

The corporation of Lyon, Gary & Company 
may in like manner resign or discharge itself 
of the duty herein imposed upon it, in which 
case successors to its duties and authority shall 
be selected and appointed in like manner as 
successor Trustees hereunder may be selected 
and appointed. 

ARTICLE XXIII. 

In case the trust created hereby shall be- 
come vacant by reason of the resignation, in- 
capacity or inability to act of the said Trustees, 
or either of them, or of any successor Trustee, 



TRUST DEEDS 257 

or otherwise (except as provided in the follow- 
ing Article hereof), it shall be lawful for the 
holders of the majority in amount of the bonds 
then outstanding to appoint a successor, or 
successors, by a writing by them signed, or, for 
any Judge of the United States Circuit Court 
for the Seventh Judicial Circuit in default of 
such appointment, to appoint such a successor, 
or successors, on the application of the holders 
of not less than one-tenth in amount of the 
said bonds then outstanding, — one Trustee al- 
ways to be a private person, and the other to 
be a Trust Company, organized under the laws 
of the State of Illinois. 

And upon any such appointment being made, 
and the said trust being accepted, such suc- 
cessors or substitute Trustees shall, without 
further act or deed, become vested with all and 
singular the estate, rights and powers, and 
shall perform all the duties of Trustees, in 
like manner, and with the same effect as if 
named in this instrument as Trustees; 

Always provided, however, that the imme- 
diate successor, if any there be, to John K. 
Lyon, Trustee, shall be John W. Gary, of Chi- 
cago, State of Illinois, if said Gary will at the 
time accept such trust 

ARTICLE XXIV. 

The holders of a majority in amount of the 
outstanding bonds secured by this instrument, 



258 TIMBER BONDS 

provided the Company shall join, (or the hold- 
ers of three-quarters in amount of the bonds 
then outstanding hereunder without such join- 
der) may, by a writing under their respective 
hands and seals, change the Trustees and ap- 
point new Trustees (one Trustee always to be 
a private person and the other .to be a Trust 
Company organized under the laws of the State 
of Illinois, said John W. Gary to be the imme- 
diate successor Trustee to John K. Lyon), 
which instrument, when recorded in the proper 
offices for recording deeds and mortgages in 
Liberty County, State of Georgia, (and on pay- 
ment to said Trustees of all charges and com- 
pensation to which they shall at that time be 
entitled hereunder including reasonable coun- 
sel and attorneys' fees) shall ipso facto, and 
without any further action, substitute such new 
Trustees in the place of the Trustees herein 
named, or in place of any successor Trustees, 
with all the rights, powers and privileges 
granted to the said Trustees under this instru- 
ment, and no conveyance from the old Trus- 
tees to the said Trustees thus appointed shall 
be necessary to convey the trust premises to 
such new Trustees, but the old Trustees shall 
and will, upon the request of such new Trus- 
tees, execute any conveyance necessary or 
proper in order to vest the said premises in 
such new Trustees. 

In case of the death or resignation, or the 
incapacity or inability of the said John K 



TRUST DEEDS 259 

Lyon to act as Trustee hereunder, the said 
Corporation Trustee and said Lyon, Gary & 
Company may in like manner, to wit, by writing 
properly executed and recorded, appoint an- 
other person in his place and stead, in which 
case such successor so appointed shall succeed 
to all the title, rights, powers and privileges 
herein or hereby conferred upon or vested in 
the said John K. Lyon (his immediate suc- 
cessor, however, to be the said John W. Gary), 
this being an alternative method of filling such 
vacancy, in addition to that above provided. 

ARTICLE XXV. 

It is expressly understood and agreed that no 
obligation whatever rests upon the Trustees 
to see to the recording of this instrument, nor 
to do any act suitable or proper to be done for 
the continuing of the lien created hereby, nor 
to give notice of the existence of such lien, 
nor to do any act which, by the terms of this 
instrument, is required to be done by some 
party hereto other than said Trustees. Said 
Trustees shall be under no duty or obligation 
not affirmatively expressed on the face of these 
presents. Nor are said Trustees required by 
this instrument to take any action nor do any 
act made requisite by statute for protecting, 
perpetuating or keeping good the lien of these 
presents upon the land, premises and property 
or any part thereof, hereby conveyed or intend- 



260 TIMBER BONDS 

ed so to be ; nor shall the said Trustees be held 
responsible for the consequence of any breach 
by the Company or by its agents or servants of 
any of the covenants herein or in said bonds 
contained, on the part of said party of the first 
part to be kept and performed, nor for or on 
account of any act of the Company or of its 
agents or servants, of any kind, character or 
nature whatsoever. Said Trustees shall have 
no responsibility as to the validity of this mort- 
gage or deed of trust, nor as to the execution 
or acknowledgment thereof, nor as to the 
amount or extent of the security afforded by 
the property covered hereby; nor shall said 
Trustees in any other manner, or under any 
circumstances, be answerable or accountable, 
except for bad faith; it being expressly under- 
stood and agreed that the recitals herein con- 
tained are made by and on behalf of the said 
party of the first part and that the Trustees 
are not responsible for the correctness thereof. 
Said Trustees shall not be under any obliga- 
tion to take any action toward the execution 
or enforcement of the trust hereby created, 
which, in their opinion, would be likely to in- 
volve them in expense or liability, nor to de- 
fend any suit, unless one or more of the hold- 
ers of the bonds hereby secured shall, as often 
as required by the said Trustees, furnish them 
with reasonable and satisfactory indemnity 
against such expense or liability; nor shall the 
said Trustees be required to take notice of 



TRUST DEEDS 261 

any default hereunder, unless notified in writ- 
ing of ( such default by the holders of at least 
ten (10) per centum of the amount of the bonds 
hereby secured and then outstanding, nor to 
take any action in respect of any default un- 
less requested to take such action by writing, 
signed by the holders of as great a proportion 
of said bonds and be tendered indemnity as 
aforesaid, anything herein contained to the 
contrary notwithstanding ; but neither any such 
notice or request, nor this provision therefor, 
shall affect any discretion herein given to the 
said Trustees to determine whether or not they 
will take action in respect to such default, or 
to take action without such request. 

The Trustees shall be protected in acting 
upon any request, consent, certificate, bond, 
affidavit, or other paper or document believed 
by them to be genuine and to be signed by the 
proper party or parties. 

Said Trustees shall be entitled to be reim- 
bursed for all proper outlays of every sort and 
nature by them incurred, or for which they 
may be obligated in the discharge of this trust, 
and to receive a reasonable and proper com- 
pensation for any duties that they may at any 
time perform in the discharge of the same, and 
shall have a lien therefor upon the mortgaged 
property, prior and paramount to the bonds 
hereby secured. 

All expenses, fees, taxes and disbursements 
of any kind which have been made, or which 



262 TIMBER BONDS 

may be made or incurred by the Trustees in 
order to comply with any law or laws ,of the 
State of Georgia respecting foreign corpora* 
tions, or relating to the right, authority, or 
qualification of the Trustees to accept this trust 
and perform their duties hereunder, and all 
liabilities and expenses which may be incurred 
by them, and all penalties, judgments or for- 
feitures which may be assessed, levied, or re- 
covered against the Trustees for failure to 
comply with any such law or laws shall be a 
charge and shall constitute a lien upon the 
mortgaged property and premises prior and 
paramount to the bonds hereby secured. In 
case at any time it shall be necessary and prop- 
er for the said Trustees, or their successors, to 
make any investigation respecting any facts, 
preparatory to taking or not taking any action, 
or doing or not doing anything under this deed 
of trust, the certificate of the said party of the 
first part under its corporate seal and sworn 
to by its President, Treasurer or Secretary, 
shall be sufficient evidence of such fact to pro- 
tect the said Trustees, or their successors, in 
any action that they may take or decline to 
take by reason of the supposed existence of 
such fact. 

Unless it shall in writing expressly agree to 
do so, the Corporation Trustee shall not be 
obligated to pay interest on any sum of money 
which may be deposited with it under any of 
the provisions of this instrument, but if said 



TRUST DEEDS 263 

Corporation Trustee shall in writing expressly 
agree to pay interest on any such deposits, the 
amount of such interest shall be credited to 
or paid into the fund for retiring bonds as 
provided for herein. 

ARTICLE XXVI. 

John K. Lyon, one of the parties of the sec- 
ond part, has been appointed as Trustee here- 
under so that if by any present or future law 
in any jurisdiction in which it may be necessary 
to perform any act in the execution of the 
trusts hereby created, the Corporation Trus- 
tee, or its successor, or successors, may be 
incompetent or unqualified or unable or unwill- 
ing to act as such Trustee, then all of the acts 
required to be performed in such jurisdiction 
in the execution of the trusts hereby created 
shall and will be performed by said John K. 
Lyon as Trustee, or his successor, or succes- 
sors, acting alone. Except as it may be deemed 
necessary for said John K. Lyon, his succes- 
sor, or successors, to solely execute the trusts 
hereby created, Union Trust Company, Trus- 
tee, or its successor, or successors, may solely 
have and exercise the powers and shall be sole- 
ly charged with the performance of the duties 
hereinbefore declared on the part of the Trus- 
tees to be had and exercised, or to be per- 
formed. Any request in writing by the Cor- 
poration Trustee, or by any Trustee appointed 



264 TIMBER BONDS 

in succession to it, to the said John K. Lyon, 
Trustee hereunder, or to any Trustee appointed 
in succession to him, shall be sufficient warrant 
for the individual Trustee, or his successor, 
taking such action as may be so requested, and 
shall relieve him of all liability in the premises. 
Such individual Trustee, or his successor, may 
delegate to the Corporation Trustee herein 
named, or its successor, the exercise of any 
power discretionary or otherwise conferred by 
any provisions of this instrument. And it is 
further provided that neither of the Trustees 
herein named, nor any successor Trustee to 
either of them, shall be liable for any default 
or act of omission or commission of any co- 
trustee. 

ARTICLE XXVII. 

The word " Trustees' ' as used in this instru- 
ment shall be held and construed to mean the 
Trustees herein named, or their successor or 
successors for the time being in the trust here- 
by created; the words "the Company' ' shall 
be held and construed to mean Southern Tim- 
ber Company, its successors and assigns. 

And wherever the name "Lyon, Gary & 
Company' ' is used herein it shall be held and 
construed to mean Lyon, Gary & Company, the 
present Illinois corporation, or such person, 
firm or corporation as may succeed said cor- 
poration according to the terms of this instru- 
ment. 



TRUST DEEDS 265 

ARTICLE XXVIII. 

Union Trust Company and John K. Lyon 
hereby accept the trusts herein and hereby de- 
clared and created, and agree to perform the 
same upon the terms and conditions hereinbe- 
fore set forth. 

In witness whereof, the said Southern Tim- 
ber Company and the said Union Trust Com- 
pany have caused this instrument to be execut- 
ed in their corporate names by their respective 
Presidents or Vice-Presidents, and their cor- 
porate seals, duly attested by their respective 
Secretaries, to be hereunto affixed, and the said 
John K. Lyon has likewise executed the same, 
all in the presence of witnesses, on the day 
and year first above written. 

SOUTHEEN TlMBEK COMPANY, 

J COKP. 1 By W. J. Robertson, 
Attest: { seal J Its Vice-President. 

T. F. Cook, 

Its Secretary. 
Signed, sealed and delivered by 
Southern Timber Company in the 
presence of: 

D. G. Heidt, Jr., 
Edw'd E. Barthell, 

I seal superior ) J, B, Eraser, 

jCourt, liberty ^ CI e> k Superior Court, Liberty 
( co., Georgia ) County, State of Georgia. 



266 timber bonds 

Union Tkust Company, 



| CORP. 

Attest : [ seal 

Bufus F. Chapin, 
Its Secretary. 



By F. L. Wilk, 

Its Vice-President. 



Signed, sealed and delivered by 
Union Trust Company in the pres- 
ence of: 

Feed W. Low, 

F. P. SCHEULEE, 

H. L. Benson, ^ 
Notary Public, Cook County, State of 
Illinois. 

John K. Lyon, L. S. 
Signed, sealed and delivered by 
John K. Lyon, in the presence of: 
W. K. Fifield, f , s 

n -ci NOTAEY S 

Calvin Fenteess, j )■ 

Feed C. Steobehn, ^ k > 

Notary Public, Cook County, State of 
Illinois. 

I, J. B. Fraser, Clerk of the Su- 
perior Court of Liberty County, 
State of Georgia, hereby certify 
that the foregoing mortgage was 
filed in my office for record at 1:30 
o'clock p. m., on the 19th day of No- 
vember, 1910, and that the same 



TRUST DEEDS 267 

has been dnly recorded at pages 255 
to 271 inclusive in Mortgage Book 
A-H. 

This November 19, 1910. 

COURT, LIBERTY I J. B. FRASER, 

seal superiok > Clerk Superior Court, Liberty 
co., Georgia ) County, State of Georgia. 



268 TIMBER BONDS 



FIRST MORTGAGE 



FISCHEE LUMBEK CO. 

TO 

UNION TKUST COMPANY 

AND 

JOHN K. LYON 

TEUSTEES. 



DATED JANUAEY 2, 1911 



TO SECUEE $40,000 SIX PEE CENT GOLD BONDS, 
DATED JANUAEY 2, 1911. 



TRUST DEEDS 269 

THIS INSTKUMENT, made and entered into 
this second day of January, A. D. 1911, by 
and between Fischer Lumber Co., a corpora- 
tion organized and existing under and by 
virtue of the laws of the State of Oregon 
(sometimes hereinafter for brevity called 
the Company), party of the first part, and 
Union Trust Company, a corporation organ- 
ized and existing under and by virtue of the 
laws of the State of Illinois (sometimes 
hereinafter referred to as the Corporation 
Trustee), and John K. Lyon, of Hubbard 
Woods, Cook County, State of Illinois, as 
Trustees, parties of the second part, 

WITNESSETH : 

Whereas, Fischee Lumber Co. is the owner 
of certain timber, lands, logging rights, log- 
ging plant, logging flumes, a planing mill and 
a saw-mill, with their equipment and appur- 
tenances in Lane and Linn Counties, State of 
Oregon; and has full power and authority 
under its charter and the laws of the State of 
Oregon to borrow money for the transaction of 
its business in the exercise of its corporate 
powers, to issue its negotiable bonds to evidence 
the indebtedness thus incurred, and to mort- 
gage its property to secure the payment of the 
same; and 

Whereas, by the unanimous action of its 
Board of Directors, concurred in by the owners 
and holders of its entire capital stock (both of 
which actions have been duly taken and ex- 



270 TIMBER BONDS 

pressed according to law) the Company has 
resolved to borrow money for its corporate 
purposes, and to issue and dispose of its nego- 
tiable mortgage bonds therefor; and to secure 
the payment of said bonds, together with inter- 
est thereon, by a mortgage or deed of trust in 
the form of this instrument upon its property 
hereinafter described, together with the rents, 
issues and profits of the same, and which mort- 
gage or deed of trust shall be a first lien 
thereon; and 

Whebeas, by unanimous action of its Board 
of Directors, concurred in by the owners and 
holders of its entire capital stock (both of 
which actions have been duly taken and ex- 
pressed according to law) the Company has 
further resolved that said bonds shall bear 
date January 2, 1911, shall be for the aggre- 
gate amount of Forty Thousand (40,000) Dol- 
lars, shall be 40 in number ; numbered consecu- 
tively from 1 to 40, both numbers inclusive, 
shall be of the denomination of $1,000 ; shall be- 
come due and payable as follows, to wit: 

Bonds Numbered. Total Amount Maturities. 

1 to 5 inclusive $5,000 July 1, 1912; 

6 to 10 inclusive $5,000 January 1, 1913 

11 to 15 inclusive $5,000 July 1, 1913; 

16 to 20 inclusive $5,000 January 1, 1914 

21 to 25 inclusive $5,000 July 1, 1914; 

26 to 30 inclusive $5,000 January 1, 1915 

31 to 35 inclusive $5,000 .July 1, 1915; 

36 to 40 inclusive. $5,000 January 1, 1916 

all of which bonds shall be payable to bearer 
(unless registered), in gold coin of the U. S. 



TRUST DEEDS 271 

of America of the standard of weight and fine- 
ness existing on January 2, 1911, notwithstand- 
ing any law which may now or hereafter make 
anything else legal tender in payment of debts, 
at the office of Ladd and Tilton Bank in the 
City of Portland, State of Oregon, or at the op- 
tion of the holder at the banking house of Union 
Trust Company in the City of Chicago, State 
of Illinois, together with interest on said bonds 
at the rate of six (6) per centum per annum, 
which interest shall be similarly payable in like 
gold coin July 1, 1911, and semiannually there- 
after on the first day of January and the first 
day of July in each year until the principal sum 
shall be 'fully paid, upon the presentation and 
surrender of the coupons annexed to each of 
said bonds as they respectively become due, at 
the places of payment of the principal of said 
bonds ; that the said bonds shall be executed in 
the name of the Company by the President (or 
the Vice President) and the Secretary of the 
Company, with its corporate seal affixed, and 
that the coupons issued to evidence the inter- 
est upon said bonds until their maturity shall 
be authenticated by the signature of the pres- 
ent Treasurer of the Company; and that each 
of said bonds, and each of the coupons thereto 
attached, and the Trustee's and Registrar's 
certificates endorsed thereon shall be substan- 
tially in the forms following, to wit: 



272 TIMBER BONDS 

UNITED STATES OF AMERICA. 

State of Oregon. 

$1000 Number—™-- $1000 

Fischer Lumber Co. 

First Mortgage Six Per Cent. Gold Bond. 
For value received Fischer Lumber Co. 
(hereinafter called the Company), a corpora- 
tion organized and existing under the laws of 
the State of Oregon, hereby promises to pay 
to the bearer hereof, or in case this bond be 
registered, then to the registered holder hereof, 
One Thousand Dollars, on the first day of 

, 19 .... , and to pay interest 

thereon from the date hereof at the rate of six 
(6) per centum per annum payable semi- 
annually on the first day of January and the 
first day of July in each year, upon the presen- 
tation and surrender of the coupons hereto an- 
nexed as they severally become due, both prin- 
cipal and interest being payable at the office of 
Ladd and Tilton Bank in the City of Portland, 
State of Oregon, or at the option of the holder 
hereof, at the banking house of Union Trust 
Company in the City of Chicago, and State of 
Illinois, in gold coin of the United States of 
America, of or equal to the present standard 
of weight and fineness, notwithstanding any 
law which may now or hereafter make anything 
else legal tender for the payment of debts, 



TRUST DEEDS 273 

without deduction for any United States, State, 
County, Municipal or other tax or taxes or gov- 
ernmental or other charges, which the Company 
or its successors or assigns, or the Trustees or 
either of them hereinafter mentioned, may be 
required or permitted to pay, or to deduct or 
retain therefrom under or by reason of any 
present or future law. 

This bond is one of a series of 40 bonds in 
denominations of $1,000, numbered consecu- 
tively from 1 to 40, both numbers inclusive, ma- 
turing at divers dates during the period from 
July 1, 1912, to January 1, 1916, both dates in- 
clusive, amounting in the aggregate as to the 
principal thereof, to $40,000, issued under the 
provisions and all equally secured by a first 
mortgage or deed of trust dated January 2, 
1911, duly authorized, executed, acknowledged 
and delivered by the Company to Union Trust 
Company of Chicago, Illinois, and John K. 
Lyon, of Hubbard Woods, Cook County, Illi- 
nois, as Trustees, which mortgage or deed of 
trust conveys timber, lands, logging rights, a 
logging plant, a planing mill and a saw-mill, 
with their respective equipment and appurte- 
nances, and other property, in the Counties of 
Lane and Linn, in the State of Oregon, and 
which has been properly recorded in both of 
said counties. For a more complete descrip- 
tion of the property thereby mortgaged; the 
nature and extent of the security; the descrip- 
tion of the bonds thereby secured and the 



274 TIMBER BONDS 

rights of the holders thereof under the same 
and the terms and conditions upon which said 
bonds are issued, reference is hereby made to 
said mortgage or deed of trust with the same 
force and effect as if the provisions thereof 
were herein fully set forth. 

In the manner provided in said mortgage or 
deed of trust, this bond may be redeemed at 
the election of the Company, at any interest 
payment date before its date of absolute ma- 
turity upon payment to the holder hereof, or 
to Union Trust Company, one of the Trustees 
thereunder, for the benefit of such holder, of 
the principal hereof together with all interest 
due hereon at the date fixed for such redemp- 
tion, and a premium of three (3) per centum on 
the principal hereof, and in event of default as 
defined in the aforesaid mortgage or deed of 
trust, the principal of this bond may be de- 
clared and become due and payable in the man- 
ner and with the effect therein provided. 

This bond shall pass by delivery unless reg- 
istered, but it may be registered as to the prin- 
cipal hereof in the holder's name on registra- 
tion books kept for that purpose by the said 
Union Trust Company, Eegistrar, such regis- 
try being noted hereon by said Eegistrar, after 
which only such registered holder shall be en- 
titled to receive the principal hereof; and if 
registered no subsequent transfer hereof shall 
be valid, unless made on said Eegistrar 's books 
and similarly noted hereon ; but the same may 



TRUST DEEDS 275 

be discharged from registry by transfer to 
bearer, after which it shall be transferable by 
delivery. It may be registered again, however, 
in the manner above provided. The registry of 
this bond shall not impair the negotiability of 
the coupons, but they shall continue to be trans- 
ferable by delivery notwithstanding such regis- 
tration. 

The Company hereby consents in case of the 
foreclosure of the mortgage or deed of trust 
given to secure the payment of the said bonds, 
to the entry of a deficiency judgment against it, 
and that the court may direct in any decree of 
foreclosure of said mortgage or deed of trust 
that any balance due with costs and interest, 
which may remain unsatisfied after the sale of 
the said mortgaged premises and the applica- 
tion of the proceeds of such sale toward the 
payment of the said bonds, shall be satisfied 
from any of its property. 

This bond shall not be obligatory for any 
purpose until it shall have been authenticated 
by the certificate of Union Trust Company, one 
of the Trustees under said mortgage or deed of 
trust, indorsed hereon. 

In witness whereof, Fischer Lumber Co. has 
caused this instrument to be signed in its cor- 
porate name by its President and its corporate 
seal to be hereunto affixed and attested by its 
Secretary, and the interest coupons hereto at- 
tached to be authenticated by the signature of 
its Treasurer, this second day of January, 1911. 



276 TIMBER BONDS 

Fischer Lumber Co., 

By 

Its President. 
Attest : 



Its Secretary. 

$30 COUPONS. 

On the first day of , 19 .... , 

Fischer Lumber Co., an Oregon corporation, 

will pay to bearer Dollars 

in gold coin of the United States of America of 
the standard existing on January 2, 1911, at 
the office of the Ladd and Tilton Bank in the 
City of Portland, State of Oregon, or at the 
holder's option at the banking house of Union 
Trust Company in the City of Chicago, State 
of Illinois, without deduction for taxes, being 
six months' interest due that date on its first 
mortgage gold bond of January 2, 1911, No. 



Treasurer. 

TEUSTEE'S CEETIFICATE. 

This is to certify that this is one of the bonds 
described in and secured by the mortgage or 
deed of trust within referred to. 

Union Trust Company, Trustee, 

By , 



TRUST DEEDS 

REGISTRATION. 



277 



Notice: There must be no writing in this 
form except by the Registrar, the Union Trust 
Company. 



Date of 
Registration 



Name and Address 
Registered Owner 



Signature of 
Registrar 



and which bonds shall also bear the personal 
guaranty of certain persons pecuniarily inter- 
ested in the Company and in the sale of the 
said bonds, said guaranty being in form sub- 
stantially as follows: 

GUARANTY. 

Marcola, Oregon, January 2, 1911. 
For a valuable consideration, we, Fred 
Fischer, Sr., Fred Fischer, Jr., Henry Fischer 
and Walter Fischer, all of Marcola, State of 
Oregon, and Carl E. Fischer, of Springfield, 
State of Oregon, do hereby jointly and sev- 
erally guarantee the prompt and punctual pay- 



278 TIMBER BONDS 

ment of the within bond and of the interest 
coupons thereto attached, whenever they may 
become due or payable, whether by lapse or ex- 
piration of time, or by declaration of prior ma- 
turity under the provisions of the mortgage or 
trust deed given to secure their payment, or 
by the terms of any extension of the time of 
payment in whole or in part; authorizing the 
maker, its successors or assigns, without notice 
to us or to any one of us, to obtain any exten- 
sion or extensions which it may see fit ; and we 
also agree that in case of nonpayment thereof 
whenever the same may so become due, suit 
may be brought against us or any one or more 
of us, whether or not suit has been brought 
against the maker, and that in any such suit the 
maker may be joined with us or any one or 
more of us, at the option of the plaintiff in such 
suit. 



And whereas, all things necessary to make 
said bonds when executed by the Company and 
certified by the Corporation Trustee, a valid, 
binding, legal, negotiable obligation of the Com- 
pany, and this instrument a valid mortgage to 
secure the payment thereof, have been done, 
happened and been performed: — 



TRUST DEEDS 279 

Now, theeefoke, for and in consideration of 
One Dollar in hand paid by the parties of the 
second part to the party of the first part, the 
receipt whereof is hereby acknowledged, and 
the other considerations herein expressed, and 
in order to secure the payment of the principal 
and interest of all of said bonds above de- 
scribed, at any time outstanding, according to 
their tenor and effect, and to secure the per- 
formance of all the covenants and conditions 
herein contained, and to declare the terms and 
conditions upon which said bonds are issued or 
to be issued, and for and in consideration of the 
acceptance or purchase of said bonds or any 
of them, by whomsoever may be or become the 
holders thereof, the said Fischer Lumber Go. 
has executed and delivered these presents, and 
hereby grants, sells, bargains, aliens, releases, 
conveys, assigns, warrants, transfers, and mort- 
gages unto said Union Trust Company and 
John K. Lyon, Trustees, their successors and 
assigns, with full subrogation to any and all 
warranties or rights in action against previous 
vendors or holders or other persons, the fol- 
lowing described timber, lands, logging rights, 
logging plant, logging apparatus, planing mill 
with its plant, equipment and appurtenances, 
saw-mill with its plant, equipment and appur- 
tenances, and other property, lying, being and 
situate in Lane and Linn Counties, State of 
Oregon, to wit: 



280 TIMBER BONDS 

Lots One (1) and Two (2) of Section 

Four (4) 

being the North half of the North- 
east quarter of said Section Four (4). 
South half of Northeast quarter of Sec- 
tion Four (4) 

Southeast quarter of Section Four (4) 

Lots Four (4), Five (5), Six (6), and 

Seven (7) of Section Six (6) 

being the West half of the "West half 
of said Section Six (6). 
South half of Northeast quarter of Sec- 
tion Six (6) 

North half of Southeast quarter of Sec- 
tion Six (6) 

West half of Section Eight (8) 

Southeast quarter of Section Eight (8) 

all in Township Sixteen (16) South of Range 
Two (2) West of the Willamette Meridian. 

Also the following land, to wit, Lot One (1) 
of Section Twenty-four (24) in Township Six- 
teen (16) South, Eange Two (2) West of the 
Willamette Meridian, including the planing 
mill plant thereon, known as the Fischer Plan- 
ing Mill, together with its equipment and ap- 
purtenances ; 

Also the Northeast quarter of the Southeast 
quarter of Section Ten (10) in said Township 
Sixteen (16) South, Range Two (2) West of 
the Willamette Meridian, including the saw- 
mill plant thereon, known as the Fischer Saw 



TRUST DEEDS 281 

Mill, together with its equipment and appurte- 
nances ; 

Also the flumes running across Sections 
Eleven (11), Thirteen (13) and Fourteen (14) 
in said Township Sixteen (16) South of Eange 
Two (2) West of the Willamette Meridian, to- 
gether with all logging rights, rights of way 
and other rights which the Company has in or 
to any portion of said Sections 11, 13 and 14, 
including the right to perpetually maintain and 
operate said flumes. 

All of said property lying, being and situate 
in the Counties of Lane and Linn, State of 
Oregon, and the same being hereby conveyed 
whether the same or any portion thereof lies in 
either one or both of said Counties. 

Also all dry kilns, dry sheds, boilers, engines, 
donkey engines, railroad track, cars, locomo- 
tives, electric light plant, power houses, ma- 
chine shops, water works, and all other build- 
ings of every kind, and all machinery and equip- 
ment now or hereafter used in connection with 
said saw-mill plant, logging plant, or said plan- 
ing mill plant above described, together with 
all betterments, additions and improvements of 
every nature and description hereafter placed 
upon said premises, and used or intended to be 
used in connection therewith. 

To have and to hold all and singular the 
above described property and rights, together 
with all the rights, title and interest thereunto 
belonging, and all the privileges and appurte- 



282 TIMBER BONDS 

nances thereunto appertaining, and together 
with all other property which by the terms 
hereof may become subject to this instrument, 
unto the said Union Trust Company and the 
said John K. Lyon, Trustees, their successors 
in trust, and their assigns in fee simple for- 
ever. And the party of the first part covenants 
that it is seized and possessed of the property 
above described and conveyed in fee simple; 
that the same is unencumbered and that it has 
a good right to convey it; and it warrants to 
forever defend the title thereto unto the said 
Trustees, their successors and assigns, against 
the lawful claims of all persons whomsoever — 
In trust nevertheless for the purpose of se- 
curing the prompt and punctual payment of 
all and every of the bonds above described and 
of the interest coupons thereto attached, with- 
out preference or priority of one bond over 
another, or of bonds over coupons, or of cou- 
pons over bonds, with the same effect as if all 
of said bonds matured upon the same date, and 
regardless of the date or time of the issue or 
negotiation thereof; and subject to the follow- 
ing provisions, restrictions and conditions, 
to wit: 

ARTICLE I. 

All of the bonds issued and certified here- 
under shall stand upon equality without regard 
to date of issue, certification or delivery. Only 
such bonds as shall bear thereon endorsed the 



TRUST DEEDS . 283 

certificate of the Corporation Trustee or its 
successor hereunder, by it duly executed, shall 
be valid or obligatory for any purpose or shall 
be secured by this instrument or entitled to any 
lien or benefit hereunder, and every such cer- 
tificate of said Corporation Trustee upon any 
bond executed in behalf of the Company shall 
be the only and conclusive evidence that the 
bond so certified has been duly issued here- 
under and is entitled to the benefit of the trust 
hereby created, and no holder of any bond 
issued hereunder which shall be so certified by 
said Corporation Trustee shall be under a duty 
to ascertain whether the same shall have been 
duly issued, certified and delivered, according 
to the provisions hereof. 

The entire issue of said bonds shall be ex- 
ecuted by the Company and at once certified 
and delivered by said Corporation Trustee to 
the President of the Company or to such per- 
son or persons as the Board of Directors of the 
Company by its resolution may designate. 

Upon certifying or delivering any bond un- 
der this mortgage or deed of trust all coupons 
thereon then matured shall be detached and 
cancelled by the Corporation Trustee and de- 
livered to the Company. 

In case the officers who shall have signed and 
sealed any of the bonds aforesaid shall cease to 
be such officers of the Company before the 
bonds so signed and sealed shall have been ac- 
tually certified and delivered by the Corpora- 



284 TIMBER BONDS 

tion Trustee, or issued, such bonds may never- 
theless be issued, certified and delivered as 
though the persons who had signed and sealed 
such bonds had not ceased to be officers of said 
Company. 

Interest coupons shall be authenticated by 
the signature of the present Treasurer of the 
Company, and the Company may adopt and 
use said coupons, notwithstanding the fact that 
the present Treasurer may have ceased to hold 
such office at the time when said bonds or some 
portion thereof, shall be actually certified and 
delivered. 

The Trustees shall not be bound to see to 
the application, use or disposition of any of 
the bonds secured hereby, or of the proceeds 
thereof. 

AETICLE II. 

In case any bond issued under this instru- 
ment or the coupons thereto appertaining, shall 
become mutilated, lost or destroyed, the Com- 
pany in its discretion may issue and thereupon 
the Corporation Trustee shall certify and de- 
liver a new bond of like date, tenor and amount, 
bearing the same number as the one mutilated, 
lost or destroyed, in exchange for and in place 
of and upon the cancellation of the mutilated 
bond or coupons, or in lieu of and substitution 
for the same, if lost or destroyed. In such case 
the applicant for such new or substituted bond 
shall bear the expense of furnishing the same. 



TRUST DEEDS 285 

The Company shall not be required to issue 
nor the Corporation Trustee to certify a new 
bond in lieu of any bond alleged to have been 
lost or destroyed unless the applicant for such 
new bond shall first furnish evidence of such 
loss or destruction, and indemnity against its 
subsequent presentation as an obligation of the 
Company, which evidence and indemnity shall 
be satisfactory to both the Company and the 
Corporation Trustee, in their discretion. 

ARTICLE III 

Any bond secured hereby shall pass by de- 
livery unless registered, but it may be reg- 
istered as to principal in the holder's name on 
the books of the Union Trust Company, Reg- 
istrar, at its office in the City of Chicago, Illi- 
nois, such registry being noted on the bond by 
said Registrar, after which only such registered 
holder, or the legal representative of such 
holder, shall be entitled to receive the princi- 
pal thereof; and no transfer shall be valid un- 
less made on said Registrar's books by the reg- 
istered holder of the bond in person or by the 
legal representative of such holder and simi- 
larly noted on the bond; but the bond may be 
discharged from registry by registration to 
bearer after which it shall be transferable by 
delivery. It may be registered again, however, 
in the manner above provided. 

The registry of any bond shall not impair 



286 TIMBER BONDS 

the negotiability of the coupons, but the same 
shall continue to be transferable by delivery 
notwithstanding such registration. 

ARTICLE IV. 

Fischer Lumber Co. agrees and covenants 
that it will duly and punctually pay, or cause 
to be paid, to every holder of any bond issued 
hereunder and secured hereby the principal and 
interest accrued thereon, all in gold coin of the 
United States of America of the standard of 
weight and fineness existing on the second day 
of January, 1911, notwithstanding any law 
which may now or herafter make anything else 
a legal tender in payment of debts, at the dates 
and places, and in the manner mentioned in 
said bonds or in the coupons thereto appertain- 
ing, according to the true intent and meaning 
thereof, and without deduction from either the 
principal or interest for any tax, or taxes, or 
assessments, or other governmental charges 
which may be imposed thereon, or which the 
Company may be required or permitted to pay 
or to deduct or retain therefrom under or by 
reason of any present or future law of the 
United States, or of any State, County or Mu- 
nicipality thereunder.* 

However, the interest on said bonds shall be 
payable only upon the presentation and sur- 
render of the respective coupons annexed to 
said bonds, as such coupons respectively ma- 



TRUST DEEDS 287 

ture and when and as paid all the coupons shall 
forthwith he cancelled and delivered to the 
Company, 

Said Company further covenants that in case 
of its failure to promptly and punctually pay 
the said bonds and interest coupons, or any of 
them, whenever they may become due and pay- 
able, whether by the lapse of time or otherwise, 
it will pay, and it hereby promises and agrees 
to pay in addition to the costs and disburse- 
ments otherwise allowed by statute or other 
law, such additional sum or sums in like gold 
coin as may be adjudged reasonable for attor- 
neys' fees to be allowed in any suit or action 
that may be instituted to collect the same. 

And the Company agrees promptly, and in 
time to prevent any sale or forfeiture of the 
mortgaged premises or any part of the same 
on account thereof, to pay, or cause to be paid, 
all taxes, assessments and governmental 
charges which shall from time to time be legally 
imposed, assessed or levied, upon or against 
the property hereby conveyed, or upon any part 
thereof, or upon the profits or income thereof; 
and to promptly pay all taxes or governmental 
charges that may be levied or assessed on this 
mortgage and on the debt secured hereby be- 
fore said taxes become delinquent; and to pay 
or cause to be paid any judgment or other en- 
cumbrance, the lien whereof might be held su- 
perior to the lien of these presents, upon the 
property hereby conveyed or upon any part 



288 TIMBER BONDS 

thereof, so that the priority of these presents 
shall at all times be fully maintained and pre- 
served; provided, however, that the Company 
may, with the consent of the Corporation Trus 
tee thereto first had and obtained in writing, 
resist in any legal way the payment of any tax, 
assessment or charge upon said property hereby 
conveyed, or any part thereof, which the Com- 
pany may deem unjust, illegal or unauthorized. 
And the Company agrees to do on demand of 
the said Trustee, or its successors, all acts 
necessary or proper to keep valid the lien 
hereby created or intended to be created; and 
at any future time and as often as it may be 
necessary to execute or cause to be executed on 
demand of said Trustee, or its successor or suc- 
cessors, all such other and additional deeds, 
mortgages, or other instruments in writing, in 
due form and effect, as may be proper to the 
better carrying out of the true intent and mean- 
ing of these presents. 

And the Company further covenants and 
agrees that it will not cut nor permit to be cut 
any timber from the premises hereunder mort- 
gaged, nor any timber hereunder mortgaged, 
nor extract anything from or deaden the said 
timber, or any portion thereof, nor permit the 
same to be done, nor permit any waste or other 
change in the property hereby mortgaged, or 
any portion thereof, except as is herein other- 
wise expressly provided, but that it will dili- 
gently preserve and protect the same. 



TRUST DEEDS 289 

Iii case the Company shall fail to promptly 
pay or cause to be paid any tax, assessment or 
other charge as provided for herein, either of 
the Trustees may pay the same (but shall not 
be under any obligation whatsoever so to do), 
in which event such Trustee shall be subro- 
gated, either with or without an act, writing or 
other instrument to that effect, to the rights and 
demands of the state, county, city, town or other 
municipality, as the case may be; and in addi- 
tion thereto the amount thus expended together 
with interest thereon at the rate of six per 
centum per annum, shall be a charge on the 
property hereby conveyed prior to the lien of 
the bonds hereby secured. 

The Company covenants that its mill plants, 
equipment and appurtenances, and its flumes, 
logging apparatus and logging plant will be 
kept in repair and maintained in good working 
order and condition, and if worn out or injured 
will be replaced by other property suitable to 
the business for which it is now used, and of at 
least equal value, and that such mill plants, 
equipment and appurtenances, and such flumes, 
logging apparatus and logging plant shall not 
be removed from the mortgaged premises with- 
out the consent of the Trustees hereunder. 

ARTICLE V. 

The Company agrees that it will, at all times, 
during the existence of any of the indebtedness 



290 TIMBER BONDS 

secured hereby, keep or cause to be kept in- 
sured against loss by fire or cyclone, all of the 
buildings now on any portion of the property 
hereby mortgaged or which may hereafter be 
erected thereon, and all the machinery, equip- 
ment and apparatus used or provided for use in 
connection with said mill plants and equipment 
that are usually insured by companies or per- 
sons engaged in like business, and in the same 
manner, and to the same extent (but in an 
amount not less than Eight Thousand Dollars), 
and shall cause such insurance to be made pay- 
able in case of loss to the Trustees hereunder 
or their successors, by proper stipulation in the 
face of the policies therefor. 

In case of loss or damage to any property 
covered by such insurance policies the Trustees 
may allow the amount of the insurance money 
received from said policies on account of such 
loss to be applied toward the replacement of, 
or addition to the property destroyed or dam- 
aged, if the Company shall in writing so re- 
quest. In such case the Trustees shall from 
time to time pay to the Company any or all of 
the proceeds of such insurance money so col- 
lected or received; but no such payment shall 
be made until and unless the Trustees shall first 
be furnished with a statement or statements 
verified by the affidavits of the President or 
Vice-President of the Company showing that 
the Company has theretofore made actual ex- 
penditures to an amount equal to or greater 



TRUST DEEDS 291 

than the amount of insurance money sought to 
be thus obtained from the Trustees, in or about 
the repair or the replacement of the property 
damaged or destroyed for or on account of 
which such insurance money was collected ; and 
all such repairs or replacements shall be and 
become subject to the lien of this instrument in 
like manner and to the same extent as was the 
property damaged or destroyed. The Trustees 
shall not be compelled to act upon such affida- 
vits, but should they deem proper they may 
before making such payments of insurance 
money make or cause to be made such further 
investigations with reference to such expendi- 
tures, repairs or replacements, as they see fit. 

But if within ninety days from the time of 
the collection of the proceeds of any such in- 
surance policy the Company shall not in writing 
request the Trustees to hold such proceeds for 
the purpose of applying the same on such re- 
pairs or replacements, then the said sums so 
collected shall be credited to and become a part 
of the fund held by the Corporation Trustee 
for the purpose of retiring bonds hereby se- 
cured, as is provided in Article VII and other 
Articles hereof. 

Likewise shall all surplus moneys be so ap- 
plied in case the cost of repairs or replace- 
ments shall not equal the total amount of the 
proceeds collected from such insurance poli- 
cies. 

In case of loss covered by any policy of in- 



292 TIMBER BONDS 

surance, any appraisement or adjustment of 
such loss, and settlement and payment of in- 
demnity therefor, which may be agreed upon 
between the Company and any insurance com- 
pany, may be consented to and accepted by the 
Trustees. 

The Trustees shall be in no way liable or re- 
sponsible for a failure to collect any insurance 
money that may become due them under the 
provisions hereof, or of the policies above re- 
ferred to, but only for such amounts as may 
come into their hands as the proceeds of such 
policies. 

AETICLE VI. 

In order to prevent any accumulation of 
bonds or coupons after their maturity, the 
Company covenants and agrees that it will not 
directly or indirectly extend or assent to the ex- 
tension of the time for payment of any of the 
bonds or of any coupons of any of the bonds 
secured hereby, by purchase or funding of such 
bonds or coupons or by any other arrangement 
unless and except such extension shall be sub- 
ject to the terms of this article. In case the 
time for payment of any such bond or coupon 
shall be so extended, whether or not such ex- 
tension be with or by the consent of the Com- 
pany, such bond or coupon shall not be entitled, 
in case of any default hereunder, to the benefit 
or security of this mortgage, except subject to 
the prior payment in full of the principal of 



TRUST DEEDS 293 

all bonds issued hereunder then outstanding, 
and of all matured coupons and accrued inter- 
est thereon, and of all other accrued interest on 
such bonds the payment of which has not been 
so extended. 

ARTICLE VII. 

The number first having been selected by lot 
by the Corporation Trustee, any outstanding 
bond issued hereunder may be redeemed and 
paid by the Company at the place of payment 
of said bonds on any interest payment date, 
upon payment of the principal of said bond 
and interest due thereon at the date of such re- 
demption, together with a premium of three 
(3) per centum on the principal thereof. Such 
selection shall in every case be made from the 
bonds first maturing, no bond being subject to 
selection for redemption until all bonds of prior 
maturities have either been paid or selected 
for redemption. In case of an election to re- 
deem any of the bonds issued hereunder before 
maturity and a selection pursuant to such elec- 
tion either the Company or the Corporation 
Trustee shall publish a notice of such election 
to redeem and the selection thereunder once a 
week for four successive weeks (the first of 
such publications to be not less than ninety 
days previous to the date of redemption) in 
some newspaper of general circulation pub- 
lished in the City of Portland, State of Oregon, 
and in a similar newspaper published in the 



294 TIMBER BONDS 

City of Chicago, State of Illinois, which notice 
shall state the numbers of the bonds selected as 
above to be redeemed, and the date when the 
bonds so selected shall be due and payable under 
such redemption. All bonds so designated for 
redemption shall become due and payable on 
the date given in such published notice, and 
shall from such date cease to draw interest, 
provided that at or prior to such date there 
shall have been deposited with the Corporation 
Trustee the proper amount of money for the 
redemption of said bonds so designated for re- 
demption. Upon the deposit with the Corpora- 
tion Trustee of the proper amount of money 
for the redemption of any bond or bonds so 
designated the Company and the Trustees may 
be privileged to consider such bond or bonds 
as paid and cancelled, and the Company shall 
be under no further obligation to the holder 
or holders of such bond or bonds ; nor shall the 
Trustees be further liable or under obligation 
to such holder or holders except for the moneys 
deposited in redemption of such bonds, to be 
paid without interest upon their surrender. 

AETICLE VIII. 

Subject to the right of suspension or rev- 
ocation as provided in Article XI hereof and 
so long as the Conpany shall not be in default 
in the payment of any of the bonds or interest 
coupons secured hereby, or in the payment of 



TRUST DEEDS 295 

taxes or other governmental assessments or 
charges as provided in this mortgage, or in the 
performance of any of the other covenants 
herein contained on its part to be performed, 
the Trustees shall and are hereby authorized 
to release unto the Company and to permit the 
Company to cut and remove free from the lien 
of this mortgage, or deed of trust, any of the 
timber conveyed hereby, or the timber on any 
or all of the lands conveyed hereby, which the 
Company may select, when the Company shall 
have first paid to the Corporation Trustee One 
and Fifty-Hundredths (1 50-100) Dollars per 
thousand feet on the estimated stumpage for 
the timber on each description or group of de- 
scriptions which the Company then desires the 
right to cut, as the estimated stumpage thereon 
is shown on a list called "Estimated Stumpage 
List," signed in triplicate by the Company, by 
the Corporation Trustee and by Lyon, Gary & 
Company, an Illinois corporation, and one 
original of which list is deposited with each of 
the signatories thereto. Consideration for the 
privilege of obtaining such releases may be 
given by the Company in any of the following 
three ways: 

(a) By payment in cash. 

(b) By delivery to the Trustees of any 
of the bonds hereby secured and then out- 
standing, which it may have acquired; in 
which case, for the purpose of obtaining re- 
lease the amount of the principal of such 



296 TIMBER BONDS 

bonds so delivered shall be treated the same 
as if a like amount had been paid to the Trus- 
tees in cash. 

(c) By the payment of any of the bonds 
secured hereby — treating only the amount of 
principal paid as a consideration for re- 
leases. 

In the event that the Company shall acquire 
and deliver bonds to the Trustees, as provided 
in paragraph (b) above, the Trustees shall can- 
cel the said bonds so delivered and forming the 
consideration or part of the consideration for 
such releases and also the coupons attached 
thereto. 

The Trustees shall keep a list of the numbers 
of all bonds so used for the purpose of securing 
releases of portions of the timber and shall 
indicate on each such bond that it has been so 
used — together with the date of such use. 

All money received by the Corporation Trus- 
tee under this Article shall be used for the re- 
tirement of bonds secured hereby as provided 
in Article VII hereof. 

The Company may enter upon any land from 
which the timber has been so released and may 
conduct logging operations thereon as it may 
desire ; and the Company may also, at its pleas- 
ure, remove any logging railroad or other prop- 
erty which it may place on such land. 

The Company covenants that it will keep 
proper books of record and account showing 
full, true and perfect entries of all dealings 



TRUST DEEDS 297 

or transactions of or in relation to the plants, 
properties, business and affairs of the Com- 
pany, and which shall at all times be open to 
the inspection of the Trustees or either of 
them, and of Lyon, Gary & Company, or of 
their respective successors hereunder; and 
that whenever requested either by the Trus- 
tees or by Lyon, Gary & Company or their re- 
spective successors the Company shall and 
will furnish complete statements showing its 
financial condition, together with such other 
information bearing on the security of the 
bonds as may be requested. 

AETICLE IX. 

In case before the payment in full of all the 
bonds hereby secured with interest thereon, 
any timber hereby mortgaged or the timber on 
any portion of the premises hereby mortgaged 
(except such as may have been theretofore re- 
leased under the provisions of this instrument) 
shall be injured or damaged by the action of 
fire, or by wind or the other elements to an 
extent sufficient in the opinion of the Trustees 
or of Lyon, Gary & Company, to appreciably 
affect the value of the same as security for 
the payment of the bonds and coupons then 
outstanding, the Company shall within sixty 
days after the extent of such loss shall be de- 
termined, as in this Article hereinafter pro- 
vided, pay to the Corporation Trustee for the 



298 TIMBER BONDS 

benefit of the bondholders the sum of Seventy- 
five (75) Cents per thousand feet stumpage on 
the timber so injured or damaged, the land 
descriptions on which the timber has been 
injured or damaged being ascertained by in- 
vestigation under direction of the Trustees, 
and the amount of timber thereon so damaged, 
on which the payments of Seventy-five (75) 
Cents per thousand feet shall be made as above 
expressed, being determined by the estimates 
to be made by a cruiser to be selected by the 
Trustees with the written approval of Lyon, 
Gary & Company ; the expenses of ascertaining 
such land descriptions and the amount of tim- 
ber thereon so damaged to be paid by the Com- 
pany and to be a charge against the property 
herein conveyed and secured by this mortgage. 

The salvage of any timber so injured or 
damaged, and on account of which damage pay- 
ments are made as above provided, shall re- 
main subject to the terms of this instrument, 
notwithstanding such payments ; but should the 
Company desire to cut and remove such tim- 
ber, free from the lien or encumbrance of this 
instrument, it shall have the right to do so 
upon paying to the Corporation Trustee for the 
benefit of the bondholders, the additional sum 
of Seventy-five (75) Cents per thousand feet 
stumpage for any such damaged timber. 

Should the Company not take and pay for 
the salvage of such damaged timber within one 
year from the time that it shall have been dam- 



TRUST DEEDS 299 

aged, the Trustees hereunder are authorized 
to dispose of the same at such price and on 
such terms as they may see fit, the proceeds 
thereof, less the expense connected therewith, 
to be held for the benefit of the bondholders as 
is provided in Article VIII hereof. 

ARTICLE X. 

All sums of money paid to the Trustees by 
the Company for the release of any portion of 
the timber hereby mortgaged, in accordance 
with any Article hereof, and all other sums 
which may come into the hands of the Trus- 
tees for the benefit of the holders of the bonds 
issued hereunder, shall be applied by the Trus- 
tees from time to time to the purchase of out- 
standing bonds issued hereunder at such prices 
as may be agreed upon by the Company and 
the Trustees. If none of the bonds secured 
hereby can be so purchased, the Trustees in the 
manner provided in Article VII hereof shall 
by lot select bonds to be redeemed to an amount 
sufficient to approximately exhaust the funds so 
held by them ; after which the bonds so selected 
shall in all things be subject to the provisions 
of Article VII hereof and redeemable in the 
manner therein provided; such redemption to 
be made on the first interest payment date 
occurring ninety days or more after the receipt 
of such funds by the Trustees. 

No bond which may be paid, bought or re- 



300 TIMBER BONDS 

deemed under this or any other Article hereof, 
shall be reissued, but the same shall be can- 
celled by the Trustees and delivered to the 
Company for preservation. 



ARTICLE XI. 

While the Company shall not be in default in 
the performance of any of the covenants in 
this instrument contained it may from time to 
time, subject to the conditions hereinafter 
stated, sell, free from the lien of this instru- 
ment, the timber on all or any part of the prop- 
erty by it mortgaged hereunder, in parcels of 
forty acres or more, upon the payment in cash 
of such sum or sums of money as the Company, 
the Trustees, and Lyon, Gary & Company may 
agree upon, which shall not be less than One 
and Fifty One-hundredths (150-100) Dollars 
per thousand feet stumpage based upon the 
estimates of the stumpage on said lands as 
shown in the Estimated Stumpage List re- 
ferred to above. 

And with the written consent of the Trus- 
tees and of said Lyon, Gary & Company, the 
Company may sell free from the lien hereof, all 
or any portion of the property hereunder mort- 
gaged (excepting the mill plants) at such price 
and on such terms as may be approved in writ- 
ing by the Company, the Trustees and Lyon, 
Gary & Company. 

Either the Trustees or Lyon, Gary & Com- 



TRUST DEEDS 301 

pany may, in their discretion, cause such in- 
vestigation to be made of the desirability of 
permitting or approving of any proposed sale 
or sales of the property or any part thereof, as 
they may see fit, and the expense of such in- 
vestigation shall be borne by the Company. The 
Trustees shall execute such instruments as may 
be necessary to release from the lien of this 
instrument any property sold, according to the 
provisions of this Article. 

And always further provided, however, that 
the right of the Company to sell the land or 
any portion of the same, as is in this Article 
provided, and the right of the Company to sell 
or procure the release of timber, in any quan- 
tities whatsoever, as provided in this or other 
articles hereof, may be suspended or revoked 
by the Trustees with the concurrence of Lyon, 
Gary & Company, in case of litigation arising 
over or affecting, or involving questions affect- 
ing or which may affect the title to as much as 
320 acres of land embraced herein ; or to either 
of the mill plants hereby mortgaged; said sus- 
pension or revocation being optional with the 
Trustees and Lyon, Gary & Company, and if 
the right is exercised, the same shall remain in 
effect until some settlement satisfactory to 
them of such litigation, or until other arrange- 
ment is made with reference thereto, which is 
satisfactory to them in their discretion. 

The proceeds of the sale of any portion of the 
property covered hereby (that is the gross 



302 TIMBER BONDS 

amount of sale less reasonable commissions and 
expense connected with such sale) shall be paid 
and turned over to the Corporation Trustee, 
and shall be treated by the Trustees in like man- 
ner and used by them for the same purpose as 
are the payments provided for in Articles VII 
and X hereof. 

Neither the Trustees nor Lyon, Gary & Com- 
pany shall be under any liability for anything 
done (or omitted to be done) by them respect- 
ively in good faith hereunder. 

ARTICLE XII. 

All moneys which may be received as com- 
pensation for any property or right of the Com- 
pany which may be taken by the exercise of the 
power of eminent domain or expropriation shall 
be paid to the Corporation Trustee and used 
for the retirement of bonds secured hereby in 
accordance with Article VII or Article X here- 
of, excepting that if such condemnation or ex- 
propriation proceedings shall be defended by 
the Company, its reasonable expenses and at- 
torney's fees in making such defense shall be 
deducted from any award and only the surplus 
paid over to the Corporation Trustee as herein 
provided. 

But the Company shall not be entitled to have 
the release of any property covered hereby on 
account of bonds purchased with money coming 
through condemnation or expropriation pro- 
ceedings. 



TRUST DEEDS 803 

ARTICLE XIII. 

If the Company or its successors or assigns, 
shall well and truly pay or cause to be paid to 
the holders thereof the principal of all bonds 
secured hereby, or intended so to be, and the 
interest moneys to become due thereon respect- 
ively, at the time and in the manner specified 
in the said bonds and coupons, without deduc- 
tion for United States, State, County, Municipal 
or other tax or taxes, or assessments, or other 
governmental charges which the Company may 
be required or permitted to pay or retain there- 
from by any present or future law, according 
to the true tenor and effect thereof, or if at 
any time the Company shall acquire and cancel 
all of the bonds and interest coupons secured 
hereby, and pay off and discharge all obliga- 
tions incurred hereunder including the pay- 
ment of the reasonable charges and expenses of 
the Trustees, then these presents and the trusts 
hereby created, and all the estate, right, title 
and interest hereby vested in the said Trustes, 
their successors and assigns, in the property 
hereby conveyed shall cease and determine, as 
fully as if this mortgage had never been exe- 
cuted; and in that case the said Trustees or 
their successors in the trust, on demand of the 
Company and the cancellation of the bonds and 
coupons hereby secured, shall execute and de- 
liver to the Company all such instruments as 
may be necessary to discharge and cancel this 
mortgage. 



304 TIMBER BONDS 

ARTICLE XIV. 

The Trustees shall have the right at any 
time in their discretion, bnt not oftener than 
once in six months, except and in case the tim- 
ber herein conveyed or any portion of same 
shall have been damaged by fire or the other 
elements, then in which case as often as in the 
opinion of the Trustees and of Lyon, Gary & 
Company it may be deemed necessary, to cause 
an inspection of the lands and timber herein 
conveyed to see whether the property mort- 
gaged hereunder has suffered any damage, or 
been trespassed upon, or whether there has 
been any unauthorized use of the timber or of 
the premises hereby conveyed or of the timber 
thereon; and the expense of any such investi- 
gation shall be borne and paid by the Com- 
pany, but the Trustees shall not be required to 
have such an examination made unless upon 
the written request of the holder or holders 
of some one or more of the bonds secured here- 
by and then outstanding, together with the 
written concurrence of Lyon, Gary & Company 
thereto, and unless such bondholder or bond- 
holders first advance or pay to the Trustees 
the estimated cost of such inspection. 

ARTICLE XV. 

If default shall be made in the payment of 
the principal of any of said bonds when the 
same become due or in the payment of any in- 



TRUST DEEDS 305 

terest money mentioned in said bonds or cou- 
pons, or any or either of them, when the same 
becomes due, or if the Company shall cut tim- 
ber situate upon the mortgaged premises or 
any part thereof or cut any of the timber mort- 
gaged hereunder, or suffer any of the same to 
be cut, otherwise than as herein provided, or 
permit any other waste of the mortgaged prop- 
erty, or shall fail to perform any other of the 
covenants in this mortgage or deed of trust con- 
tained, on its part to be performed, or to cause 
to be performed, and if such default shall con- 
tinue for a period of sixty days, the Trustees 
may, and if thereunto requested in writing by 
the holders of ten (10) per centum in interest 
of the said bonds then outstanding, shall de- 
clare the principal of all the bonds hereby se- 
cured then outstanding to be, and the same 
shall thereupon become, immediately due and 
payable, anything contained in said bonds or 
herein the contrary notwithstanding. 

ARTICLE XVI. 

If default shall be made in the payment of 
any bond or coupons when the same become 
due (whether such default shall have continued 
for the period of sixty days or not), or if de- 
fault be made in the payment of taxes, as is 
herein provided, and such default shall con- 
tinue for the period of sixty days, the Trus- 
tees may, and upon the request in writing of 



306 TIMBER BONDS 

the holders of ten (10) per centum in interest 
of the bonds and coupons then outstanding, 
and upon being indemnified to their satisfac- 
tion for any expenses and liabilities which they 
may incur, shall, as the agents and attorneys 
in fact of the Company, enter into and take 
full possession of the lands and all other prop- 
erty hereby mortgaged (except such as may 
have been theretofore released under the pro- 
visions of this instrument) and hold, use, man- 
age, maintain and operate the same ; collect and 
receive all moneys and revenues arising from 
such management and operation, and apply the 
same, first to the expenses of such operation, 
including reasonable compensation for their 
own services and for the services of their coun- 
sel, attorneys, agents and servants; second, to 
the maintenance, management and operation of 
the property, including the payment of taxes, 
assessments and other governmental charges, 
and third, to the payment pro rata of any 
amount, principal or interest, that may be due 
and in default upon said bonds, together with 
interest at the rate of six per cent per annum 
on overdue installments of interest, but not to 
the payment of any bond or coupon the time 
for payment of which may have been extended. 
In case all of the said payments shall be made 
in full, the Trustees after making such pro- 
vision as they may deem advisable for the next 
semiannual installment of interest and prin- 
cipal, shall restore to the Company the pos- 



TRUST DEEDS 307 

session of the premises hereby conveyed. This 
power of entry may be exercised as often as 
occasion therefor shall arise pending the trust; 
and this power of attorney is and shall be ir- 
revocable. 

ARTICLE XVII. 

In case (1) default shall be made in the due 
and punctual payment of any interest on any 
bond hereby secured, and any such default shall 
continue for a period of sixty days ; or in case 
(2) default shall be made in the due and 
punctual payment of the principal of any bond 
hereby secured; or in case (3) the Company 
shall cut timber situate upon said mortgaged 
premises or any timber mortgaged hereunder 
or suffer the same to be cut otherwise than is 
herein provided and such default shall continue 
for a period of sixty days; or in case (4) de- 
fault shall be made in the due observance or 
performance of any other covenant, condition 
or agreement herein required to be kept or per- 
formed by the Company and such default shall 
continue for a period of sixty days, then and 
in every such case the Trustees, or either of 
them, (a) may enter upon and take possession 
of the mortgaged property, or any part there- 
of, collect and receive all rents, issues, income 
and profits therefrom and operate and conduct 
the business of the Company to the same extent 
and in the same manner as the Company might 
do; (b) may cause this mortgage to be fore- 



308 TIMBER BONDS 

closed and the mortgaged property, or any part 
thereof, to be sold; (c) may proceed to protect 
and enforce the rights of the Trustees and the 
bondholders hereunder whether for specific per- 
formance of any covenant, condition or agree- 
ment herein contained, or in aid of the execu- 
tion of any power herein granted or for the en- 
forcement of such other appropriate legal or 
equitable remedy as may, in the opinion of 
counsel, be most effectual to protect and en- 
force the rights aforesaid; (d) shall be entitled 
as of right without notice to the appointment 
of a receiver of the mortgaged property, or 
any part thereof, and the Company does here- 
by irrevocably consent to such appointment. 

AETICLE XVIII. 

The Company covenants that it will not ap- 
ply for or avail itself of any injunction or stay 
proceedings, or plead, or in any way take ad- 
vantage of any valuation law, appraisement 
law, or any other law, whether now in force or 
which may hereafter be enacted, which may in 
any way alter, impair or impede the rights or 
remedies of the holders of the bonds issued 
hereunder, or of the Trustees as herein pro- 
vided, or which shall affect or change the time, 
place, means or mode of perfecting or enforc- 
ing such rights or remedies; and it hereby ex- 
pressly waives all benefit and advantage of any 
and all such laws. 



TRUST DEEDS 309 

ARTICLE XIX. 

Upon any foreclosure sale of the property 
hereby mortgaged, or any part thereof, the 
purchaser in making payment therefor, shall 
be entitled, after paying in cash so much as 
shall be necessary to cover the cost and ex- 
penses of the sale and of the proceedings inci- 
dent thereto, and all other charges that may 
be decreed to be paid in cash, to appropriate 
and use toward the payment of the remainder 
of the purchase price any of the bonds or cou- 
pons issued hereunder, and entitled to par- 
ticipate in the proceeds of such sale, reckoning 
each bond or coupon so appropriated and used 
at such sum as shall be payable thereon out of 
the net proceeds of the sale; and proper re- 
ceipts shall thereupon be given to the holders 
of such bonds or coupons for the amount so 
payable thereon, and the bonds and coupons, 
if the net proceeds of the sale shall be sufficient 
to pay them in full, shall be delivered up to 
the person making the sale under the decree 
of the court, or otherwise, for cancellation; or 
if the proceeds of the sale shall not be sufficient 
to pay such bonds or coupons in full, then 
proper endorsement shall be made thereon of 
the amount so paid and they shall then be re- 
turned to the holders, 

ARTICLE XX. 
Upon any foreclosure sale of the property 
hereby mortgaged the property shall be sold 



310 TIMBER BONDS 

either as a whole or in parcels at the option 
of the Trustees conducting the foreclosure pro- 
ceedings; and if in parcels the same shall be 
divided as shall be considered for the best in- 
terests of the bondholders by the said Lyon, 
Gary & Company, as may be evidenced in writ- 
ing addressed to the Trustees or to the Court; 
or in case of such foreclosure sale the property 
may at the option of the Trustees be offered 
first by parcels designated as above, and then 
as a whole, that offer producing the highest 
price for the entire property to prevail — any 
law statutory or otherwise to the contrary not- 
withstanding. And the Company hereby ex- 
pressly waives the right to require any such 
sale to be made by the acre, or in parcels, or 
the right to select such parcels. 

In case any foreclosure sale of the premises 
hereby mortgaged should fail to realize suffi- 
cient funds for the payment in full of the en- 
tire debt hereby secured, including all author- 
ized expenses, court costs, attorneys' fees, et 
cetera, the balance remaining unpaid shall be 
and remain a valid, subsisting and enforceable 
obligation of and against the Company, and a 
deficiency judgment against the Company may 
be taken thereon, and the Company hereby ir- 
revocably consents that the Court may direct 
in the decree of foreclosure of this mortgage 
that any balance which may remain unsatisfied 
after the sale of the mortgaged premises, and 
the application of the proceeds of said sale to- 



TRUST DEEDS 311 

ward the payment of the mortgage indebted- 
ness, together with costs and interest, shall be 
satisfied from any other property of the Com- 
pany. 

In case the proceeds of foreclosure sale of 
the premises hereby mortgaged should be in- 
sufficient to satisfy in full the mortgage debt 
hereby secured and then existing, together with 
costs, attorneys' fees, and expenses of fore- 
closure and sale, then and in such event the 
Trustees herein named, or any successors to 
such Trustees, are hereby authorized to com- 
mence suit in any court of record (State or 
Federal) having jurisdiction of the amount in- 
volved, in any State or Judicial Circuit or Dis- 
trict of the United States, against the Com- 
pany to recover judgment for the full amount 
of such deficiency with interest thereon at the 
rate of six per centum per annum from the date 
of such foreclosure sale, together with attor- 
neys' fees and costs of court, and the then 
President of the said Lyon, Gary & Company 
is hereby irrevocably appointed the attorney in 
fact of the Company to enter the appearance of 
the Company in said suit, and to confess judg- 
ment in said suit in favor of the plantiif there- 
in and against the Company for the full amount 
of said deficiency, with interest at the rate of 
six per cent per annum, together with court 
costs and attorneys' fees, as aforesaid, and in 
any suit upon such judgment or upon any re- 
newal thereof, to recover the amount of such 



312 TIMBER BONDS 

judgment or the renewal of such judgment, to 
likewise enter the appearance of the Company 
in any such suit and to confess judgment there- 
on for the amount of said judgment or renewal 
thereof with interest thereon at the rate afore- 
said with costs of court and attorneys' fees, 
and it is agreed that this clause shall be deemed 
a separate and independent clause of this in- 
strument, and shall be treated and deemed as a 
contract entered into between the parties here- 
to to be governed by the laws of the State of 
Illinois to the same effect as if this instrument 
had been entered into in said State and were 
to be performed there. 

AKTICLE XXI. 

In case of a foreclosure of this mortgage or 
deed of trust the proceeds shall be applied : 

First, to the payment of all expenses of pro- 
tecting and enforcing this trust, including rea- 
sonable compensation to the Trustees, and all 
expenses incurred by them in connection here- 
with, and including such reasonable attorneys' 
fees as may be allowed or adjudged by the 
Court for any service that may be rendered 
either in protecting this trust or enforcing the 
same. 

Second, to the payment pro rata of all the 
bonds and interest coupons secured hereby 
without preference of bonds over coupons or 
coupons over bonds, subject, however, to the 



TRUST DEEDS 313 

provisions of Article VI hereof; but only cou- 
pons that have matured and the earned por- 
tion of those next maturing shall be entitled 
to participate in such proceeds ; and, 

Third, the balance, if any there be, shall be 
paid to the Company or its order. 



AETICLE XXII. 

No delay or omission of the Trustees, or of 
any holder of bonds hereby secured, to exercise 
any right or power accruing upon any default, 
shall impair any such right or power, or shall 
be construed to be a waiver of any such default, 
or an acquiescence therein ; and every such pow- 
er and remedy given by this instrument to 
the Trustees, or to the bondholders, may be ex- 
ercised from time to time and as often as may 
be deemed expedient by the Trustees or by the 
bondholders. 

AETICLE XXIII. 

Except as may be herein expressly provided 
to the contrary, no right or remedy herein con- 
ferred upon or reserved to the Trustees shall 
be, or is intended to be exclusive of any other 
right or remedy, but every such right or remedy 
herein provided shall be cumulative, and shall 
be in addition to every other right or remedy 
given hereunder, or now or hereafter existing 
at law or in equity or by statute; and every 
power and remedy given by this instrument to 



314 TIMBER BONDS 

the Trustees may be exercised from time to 
time as often as may be deemed expedient. No 
delay or omission of the Trustees to exercise 
any right or power arising from any default 
shall impair any such right or power, or shall 
be construed to be a waiver of any such default 
or an acquiescence therein. 

AETICLE XXIV. 

Every holder of any of the bonds secured 
hereby accepts the same subject to the express 
understanding and agreement that every right 
of action, whether at law or in equity, under 
this instrument, is vested exclusively in the 
Trustees, and under no circumstances shall the 
holder of any bonds or coupons, or any number 
of such holders, have any right to institute any 
action at law or any suit or proceeding in 
equity, or otherwise, under this instrument, or 
upon any bond or coupon secured hereby, for 
the purpose of enforcing any covenant or rem- 
edy herein or in said bonds or coupons con- 
tained, or to foreclose this mortgage, except in 
case of refusal on the part of the Trustees to 
comply with any duty imposed on them in re- 
spect of any such covenant or foreclosure after 
demand by the holder or holders of such bonds 
or coupons and the production of such bonds 
or coupons by the holder thereof to the Trus- 
tees, or the furnishing by such holders of other 
evidence satisfactory to the Trustees that they 



TRUST DEEDS 315 

are such holders, and the giving to the trustees 
of indemnity satisfactory to them, securing 
them against liability by reason of the action 
requested; but no inaction by said Trustees, 
upon any such request shall be deemed a re- 
fusal until after the expiration of a reasonable 
time and not less than twenty (20) days for 
the consideration thereof by said Trustees. 

In every case in which the Trustees are au- 
thorized or required, under any provision of 
this instrument, to take any action upon the re- 
quest of the holders of said bonds, the Trustees 
shall have the right to require the person or 
persons presenting such request to furnish 
proof as to the ownership of such bonds as may 
be presented by him or them, by affidavit or 
other evidence satisfactory to the Trustees ; and 
if such proof be so required, the said request 
shall be without effect until such proof shall be 
furnished. 

ARTICLE XXV. 

So long as there shall be no default in any 
of the covenants in this instrument contained, 
the Company shall continue in the possession 
of all the property embraced herein, and here- 
by conveyed to the Trustees. 



ARTICLE XXVI. 

The Trustees herein named, or either of 
them, may resign or discharge themselves of 



316 TIMBER BONDS 

and from the trust hereby created, by notice in 
writing to be given to the Company and pub- 
lished once a week for two consecutive weeks 
in a paper of general circulation published in 
the said City of Chicago, and in a similar paper 
published in the said City of Portland, at least 
thirty days before such resignation shall take 
effect, or such shorter time as the party of the 
first part may accept as sufficient notice; but 
such resignation shall take effect immediately 
upon the appointment of new Trustees herein 
in place of the Trustees resigning if such new 
Trustees shall be appointed before the time 
limited by such notice. 

The corporation of Lyon, Gary & Company 
may in like manner resign or discharge itself 
of the duty herein imposed upon it, in which 
case successors to its duties and authority shall 
be selected and appointed in like manner as 
successor Trustees hereunder may be selected 
and appointed. 

AETICLE XXVII. 

In case the trust created hereby shall become 
vacant by reason of the resignation, incapacity 
or inability to act of the said Trustees, or either 
of them, or of any successor Trustee, or other- 
wise (except as provided in the following 
Article XXVIII hereof), it shall be lawful for 
the holders of the majority in amount of the 
bonds then outstanding to appoint a successor, 
or successors, by a writing by them signed, or, 



TRUST DEEDS 317 

for any judge of the United States Circuit 
Court for the Ninth Judicial Circuit in de- 
fault of such appointment, to appoint such a 
successor, or successors, on the application of 
the holders of not less than one-tenth in amount 
of the said bonds then outstanding, — one 
Trustee always to be a private person, and the 
other to be a Trust Company organized under 
the laws of the State of Illinois. 

And upon any such appointment being made, 
and the said trust being accepted, such suc- 
cessors or substitute Trustees shall, without 
further act or deed, become vested with all and 
singular the estate, right and powers, and shall 
perform all the duties of Trustees, in like man- 
ner, and with the same effect as if named in 
this instrument as Trustees. 

Always provided, however, that the imme- 
diate successor, if any there be, to John K. 
Lyon, Trustee, shall be John W. Gary, of Chi- 
cago, State of Illinois, if said Gary will at the 
time accept such trust. 

ARTICLE XXVIII. 

The holders of a majority in amount of the 
outstanding bonds secured by this instrument, 
provided the Company shall join, (or the 
holders of three-quarters in amount of the 
bonds then outstanding hereunder without such 
joinder) may, by a writing under their respect- 
ive hands and seals, change the Trustees and 



318 TIMBER BONDS 

appoint new Trustees (one Trustee always to 
be a private person, and the other to be a 
Trust Company organized under the laws of 
the State of Illinois), said John W. Gary to 
be the immediate successor to said John K. 
Lyon, which instrument, when recorded in the 
proper offices for recording deeds and mort- 
gages in the Counties of Lane and Linn, State 
of Oregon, (and on payment to said Trustees 
of all charges and compensation to which they 
shall at that time be entitled hereunder) shall 
ipso facto, and without any further action, sub- 
stitute such new Trustees in the place of the 
Trustees herein named, or in place of any suc- 
cessor Trustees, with all the rights, powers 
and privileges granted to the said Trustees 
under this instrument, and no conveyance from 
the old Trustees to the said Trustees thus ap- 
pointed shall be necessary to convey the trust 
premises to such new Trustees, but the old 
Trustees shall and will, upon the request of 
such new Trustees, execute any conveyance 
necessary or proper in order to vest the said 
premises in such new Trustees. 

In case of the death or resignation, or the 
incapacity or inability of the said John K. 
Lyon to act as Trustee hereunder, the said 
Corporation Trustee and said Lyon, Gary & 
Company may in like manner (to wit: by writ- 
ing properly executed and recorded) appoint 
another person in his place and stead, in which 
case such successor so appointed shall succeed 



TRUST DEEDS 319 

to all the title, right, powers and privileges 
herein or hereby conferred npon or vested in 
the said John K. Lyon (his immediate suc- 
cessor, however, to be the said John W. Gary), 
this being an alternative method of filling such 
vacancy, in addition to that above provided in 
this and the preceding Article hereof. 

ARTICLE XXIX. 

It is expressly understood and agreed that 
no obligation whatever rests upon the Trus- 
tees to see to the recording of this instrument, 
nor to do any act suitable or proper to be done 
for the continuing of the lien created hereby, 
nor to give notice of the existence of such lien, 
nor to do any act which, by the terms of this 
instrument, is required to be done by some 
party hereto other than said Trustees. Said 
Trustees shall be under no duty or obligation 
not affirmatively expressed on the face of these 
presents. Nor are said Trustees required by 
this instrument to take any action nor do any 
act made requisite by statute for protecting, 
perpetuating or keeping good the lien of these 
presents upon the land, premises and property, 
or any part thereof, hereby conveyed or in- 
tended so to be; nor shall the said Trustees 
be held responsible for the consequence of any 
breach by the Company or by its agents or 
servants of any of the covenants herein or in 
said bonds contained, on the part of said party 



320 TIMBER BONDS 

of the first part to be kept and performed, nor 
for or on account of any act of the Company 
or of its agents or servants, of any kind, char- 
acter or nature whatsoever. Said Trustees 
shall have no responsibility as to the validity 
of this mortgage or deed of trust, nor as to 
the execution or acknowledgment thereof, nor 
as to the amount or extent of the security af- 
forded by the property covered hereby; nor 
shall said Trustees in any other manner, or 
under any circumstances, be answerable or ac- 
countable, except for bad faith; it being ex- 
pressly understood and agreed that the recit- 
als herein contained are made by and on behalf 
of the said party of the first part and that the 
Trustees are not responsible for the correct- 
ness thereof. 

Said Trustees shall not be under any obliga- 
tion to take any action toward the execution 
or enforcement of the trust hereby created, 
which, in their opinion, would be likely to in- 
volve them in expense or liability, nor to de- 
fend any suit, unless one or more of the holders 
of the bonds hereby secured shall, as often as 
required by the said Trustees, furnish them 
with reasonable and satisfactory indemnity 
against such expense or liability; nor shall the 
said Trustees be required to take notice of any 
default hereunder, unless notified in writing of 
such default by the holders of at least ten (10) 
per centum of the amount of the bonds hereby 
secured and then outstanding, nor to take any 



TRUST DEEDS 321 

action in respect of any default unless re- 
quested to take such action by writing, signed 
by the holders of as great a proportion of said 
bonds and be tendered indemnity as aforesaid, 
anything herein contained to the contrary not- 
withstanding; but neither any such notice or 
request nor this provision therefor, shall affect 
any discretion herein given to the said Trustees 
to determine whether or not they will take ac- 
tion in respect to such default, or to take action 
without such request. 

The Trustees shall be protected in acting 
upon any request, consent, certificate, bond, af- 
fidavit, or other paper or document believed 
by them to be genuine and to be signed by the 
proper party or parties. 

Said Trustees shall be entitled to be reim- 
bursed for all proper outlays of every sort and 
nature by them incurred, or for which they 
may be obligated in the discharge of this trust, 
and to receive a reasonable and proper com- 
pensation for any duties that they may at any 
time perform in the discharge of the same, and 
shall have a lien therefor upon the mortgaged 
property, prior and paramount to the bonds 
hereby secured. 

All expenses, fees, taxes and disbursements 
of any kind which have been paid or made, or 
which may be paid or made or incurred by the 
Trustees in order to comply with any law or 
laws of the State of Oregon respecting foreign 
corporations, or relating to the right, authority, 



322 TIMBER BONDS 

or qualification of the Trustees to accept this 
trust and perform their duties hereunder, and 
all liabilities and expenses which may be in- 
curred by them, and all penalties, judgments or 
forfeitures which may be assessed, levied, or 
recovered against the Trustees for failure to 
comply with any such law or laws shall be a 
charge and shall constitute a lien upon the 
mortgaged property and premises prior and 
paramount to the bonds hereby secured. In 
case at any time it shall be necessary and 
proper for the said Trustees, or their succes- 
sors, to make any investigation respecting any 
facts, preparatory to taking or not taking any 
action, or doing or not doing anything under 
this deed of trust, the certificate of the said 
party of the first part under its corporate seal 
and sworn to by its President, Treasurer or 
Secretary, shall be sufficient evidence of such 
fact to protect the said Trustees, or their suc- 
cessors, in any action that they may take or 
decline to take by reason of the supposed ex- 
istence of such fact. 

Unless it shall in writing expressly agree to 
do so, the Corporation Trustee shall not be 
obligated to pay interest on any sum of money 
which may be deposited with it under any of 
the provisions of this instrument, but if said 
Corporation Trustee shall in writing expressly 
agree to pay interest on any such deposits, the 
amount of such interest shall be credited to or 
paid into the fund for retiring bonds as pro- 



TRUST DEEDS 323 

vided for in Article VII and other Articles 
hereof. 

ARTICLE XXX. 

John K. Lyon, one of the parties of the sec- 
ond part, has been appointed as Trustee here- 
under so that if by any present or future law 
in any jurisdiction in which it may be neces- 
sary to perform any act in the execution of the 
trusts hereby created, the Corporation Trus- 
tee, or its successor, or successors, may be in- 
competent or unqualified or unable or unwill- 
ing to act as such Trustee, then all of the acts 
required to be performed in such jurisdiction 
in the execution of the trusts hereby created, 
shall and will be performed by said John K. 
Lyon as Trustee, or his successor, or succes- 
sors, acting alone. Except as it may be deemed 
necessary for said John K. Lyon, his suc- 
cessor, or successors, to solely execute the 
trusts hereby created, Union Trust Company, 
Trustee, or its successor, or successors, may 
solely have and exercise the powers and shall 
be solely charged with the performance of the 
duties hereinbefore declared on the part of the 
Trustees to be had and exercised, or to be per- 
formed. Any request in writing by the Cor- 
poration Trustee, or by any Trustee appointed 
in succession to it, to the said John K. Lyon, 
Trustee hereunder, or to any Trustee appoint- 
ed in succession to him, shall be sufficient 
warrant for the individual Trustee, or his sue- 



324 TIMBER BONDS 

cessor, taking such action as may be so re- 
quested, and shall relieve him of all liability 
in the premises. Such individual Trustee, or 
his successor, may delegate to the Corporation 
Trustee herein named, or its successor, the ex- 
ercise of any power discretionary or otherwise 
conferred by any provisions of this instrument. 
And it is further provided that neither of the 
Trustees herein named, nor any successor 
Trustee to either of them, shall be liable for 
any default or act of omission or commission 
of any co-trustee. 

AETICLE XXXI. 

The word "Trustees" as used in this instru- 
ment shall be held and construed to mean the 
Trustees herein named, or their successor or 
successors, for the time being in the trust here- 
by created; the words "the Company " shall be 
held and construed to mean Fischer Lumber 
Co., its successors or assigns. 

And wherever the name "Lyon, Gary & 
Company' ' is used herein it shall be held and 
construed to mean Lyon, Gary & Company, the 
present Illinois Corporation, or such person, 
firm or corporation as may succeed said cor- 
poration according to the terms of this instru- 
ment. 

AETICLE XXXII. 

This instrument and the negotiations lead- 
ing up thereto, and any that may follow in 



TRUST DEEDS 325 

carrying out the purposes of this bond issue 
and the negotiation and sale of the bonds is- 
sued hereunder, are hereby declared to be and 
shall in all things be deemed and treated as an 
Oregon contract entered into between the par- 
ties hereto and the purchasers or holders of 
all or any portion of the bonds issued here- 
under and shall be governed by the laws of the 
said State of Oregon, to the same effect as if 
all the negotiations above described, occurring 
both before and after the execution of this in- 
strument (instead of but a portion of them) 
had been had in that State. 

And each Article of this instrument is hereby 
declared to be and shall be held to be a sep- 
arate and independent clause thereof. 

ARTICLE XXXIII. 

Union Trust Company and John K. Lyon 
hereby accept the trusts herein and hereby de- 
clared and created, and agree to perform the 
same upon the terms and conditions hereinbe- 
fore set forth. 

In Witness Whekeoe, the said Fischer Lum- 
ber Co. and the said Union Trust Company 
have caused this instrument to be executed in 
duplicate in their corporate names by their re- 
spective Presidents or Vice-Presidents and 
their corporate seals to be hereunto affixed 
and attested by their respective Secretaries, 
and the said John K. Lyon has likewise exe- 



326 



TIMBER BONDS 



cuted the same in duplicate, all in the presence 
of witnesses, on the date first herein written. 

Fischer Lumber Co. 
By Fred Fischer, Sr., 



Attest : 

Carl E. Fischer, 
Its Secretary. 
Witness to the execution 
this instrument by 
Fischer Lumber Co. : 
J. S. Churchill. 
James Cole. 



Its President. 



Attest : 

Eufus F. Chapin, 
Its Secretary. 

Witness to the execution 
of this instrument by 
Union Trust Company: 

W. E. Curtis. 

C. Gr. Powell. 



Fischer Lumber Co\ 
Incorporated / 
[seal] > 

1910 \ 

Marcola, Ore. ' 
Union Trust Company, 
By Frederick L. Wilk, 

Its Vice President. 



Union 
Trust Company 
[seal] 
Incorporated 1857 
Consolidated 1907 

Chicago, 111. 
John K. Lyon. 



Witness to the execution 
of this instrument by 
John K. Lyon : 
W. K. Fifield. 
F. C. Strobehn. 



trust deeds 327 

State of Oregon, 
County of Lane. 

On this the 20th day of February, 1911, be- 
fore me, J. S. Churchill, a Notary Public in 
and for said State and County, personally ap- 
peared Fred Fischer, Sr., and Carl E. Fischer, 
to me personally known, who, being duly 
sworn, did say that they are the President and 
the Secretary respectively of the Fischer Lum- 
ber Co., an Oregon corporation, and that the 
seal affixed to the foregoing instrument is the 
corporate seal of said corporation, and that 
the said instrument was signed and sealed in 
behalf of said Corporation by authority of its 
Board of Directors ; and the said Fred Fischer, 
Sr., and Carl E. Fischer, acknowledged the said 
instrument to be the free act and deed of said 
corporation. 

In Testimony Whereof, I have hereunto set 
my hand and affixed my official seal at my of- 
fice in said State and County, this the day and 
year first in this my certificate written. 

My Notarial Commission is dated April 12, 
1909, and expires April 12, 1911. 

J. S. Churchill, 
Notary Public, Lane County, 
State of Oregon, residing at 
Marcola, Said State. 

)J. S. Churchill, Notary Public, ) 
[seal] > 

State of Oregon. ) 



328 timber bonds 

State of Illinois, 
County of Cook. 

On this 2d day of February, 1911, before me, 
H. L. Benson, a Notary Public in and for said 
State and County, appeared Frederick L. Wilk 
and Eufus F. Chapin, to me personally known, 
who, being duly sworn, did say that they are 
respectively the Vice President and the Secre- 
tary of Union Trust Company, an Illinois cor- 
poration; and that the seal affixed to the fore- 
going instrument is the corporate seal of said 
corporation, and that said instrument was 
signed and sealed in behalf of said Corporation 
by authority of its Board of Directors ; and the 
said Frederick L. Wilk and Eufus F. Chapin 
acknowledged the said instrument to be the 
free act and deed of said corporation. 

In Testimony Whereof, I have hereunto set 
my hand and affixed my official seal at my of- 
fice in said State and County, this the day and 
year first in this my certificate written. 

My Notarial Commission is dated October 12, 
1910, and expires October 12, 1914. 

H. L. Benson, 

Notary Public, Cook County, 
State of Illinois, residing at 
Chicago, said State. 

(H. L. Benson, Notary Public, \ 
{ [seal] > 

I Cook Co., 111. ) 



TRUST DEEDS 329 

State of Illinois, 
Cook County. 

I, Eobert M. Sweitzer, County Clerk of the 
County of Cook, do hekeby ceetify that I am 
the lawful custodian of the official records of 
Notaries Public of said County, and as such 
officer am duly authorized to issue certificates 
of magistracy ; that H. L. Benson, whose name 
is subscribed to the proof of acknowledgment 
of the annexed instrument in writing, was, at 
the time of taking such proof of acknowledg- 
ment, a Notary Public in and for Cook County, 
duly commissioned, sworn and acting as such 
and authorized to take acknowledgments and 
proofs of deeds or conveyances of lands, tene- 
ments or hereditaments, in said State of Illi- 
nois, and to administer oaths ; all of which ap- 
pears from the records and files in my office; 
that I am well acquainted with the handwriting 
of said Notary and verily believe that the sig- 
nature to the said proof of acknowledgment 
is genuine; and further, that the annexed in- 
strument is executed and acknowledged accord- 
ing to the laws of the State of Illinois. 

In Testimony Wheeeof, I have hereunto set 
my hand and affixed the seal of the County of 
Cook at my office in the City of Chicago in the 
said County, this 2d day of February, 1911. 

Robert M. Sweitzer, 

County Clerk. 

j Seal of County of Cook,] j 

1 Illinois. I 



330 timber bonds 

State of Illinois, 
County of Cook. 

Before me, Fred C. Strobehn, the undersign- 
ed, a Notary Public in and for the State and 
County aforesaid, personally appeared the 
above named John K. Lyon, to me known to be 
the individual described in, and who executed 
the above instrument, and the said John K. 
Lyon acknowledged that he executed the same 
this 2d day of February, 1911. 

My Notarial Commission is dated September 
19, 1908, and expires September 19, 1912. 

Witness my hand and official seal at office 
in Chicago, Cook County, State of Illinois, on 
the date above written. 

Feed C. Strobehn, 
Notary Public, Cook County, 
State of Illinois, residing at 
Chicago, said State. 



i 



Feed C. Steobehn, Notary Public, 
[seal] 
Cook County, 111. 



State of Illinois, 
Cook County. 

I, Eobert M. Sweitzer, County Clerk of the 
County of Cook, do heeeby ceetify that I am 
the lawful custodian of the official records of 
Notaries Public of said County, and as such 



TRUST DEEDS 331 

officer am duly authorized to issue certificates 
of magistracy; that Feed C. Stkobehn, whose 
name is subscribed to the proof of acknowledg- 
ment of the annexed instrument in writing, 
was, at the time of taking such proof of ac- 
knowledgment, a Notary Public in and for Cook 
County, duly commissioned, sworn and acting 
as such and authorized to take acknowledg- 
ments and proofs of deeds or conveyances of 
lands, tenements or hereditaments, in said 
State of Illinois, and to administer oaths; all 
of which appears from the records and files 
in my office; that I am well acquainted with 
the handwriting of said Notary and verily be- 
lieve that the signature to the said proof of ac- 
knowledgment is genuine ; and further, that the 
annexed instrument is executed and acknowl- 
edged according to the laws of the State of 
Illinois. 

In Testimony Whekeof, I have hereunto set 
my hand and affixed the seal of the County of 
Cook at my office in the City of Chicago in 
the said County, this 2d day of February, 1911. 

ROBEKT M. SWEITZER, 

County Clerk. 

| Seal of County of Cook, 
( Illinois. 



332 TIMBER BONDS 



SS. 



State of Oregon, 
Lane County. 
I hereby certify that the within instrument 
was filed for record this 21st day of February, 
1911, at 10:30 o'clock, A. M., and duly record- 
ed in Book 31, page 64, Lane County Mortgage 
Records. 

S. M. Russell, 

County Clerk. 
Per J. A. Fountain, 



Seal of Lane County, 
State of Oregon. 



Deputy. 



State of Oregon, 

^ ss 
County of Linn. 

I hereby certify that the within was received 
and duly recorded by me in Linn County Rec- 
ords, Book of Mortgages, Vol 53, page 95, on the 
28th day of Feb., 1911, at 11 :06 o'clock A. M. 

Grant Froman, 
Recorder of Linn County , Oregon. 

Seal of Recorder of Conveyances, 
Linn County, Oregon. 



CHAPTER XI 

STYLE OF BONDS. 

The serial bond is the only safe form nnder 
which to write a loan on an active lumbering 
property. The loan is made for the specific 
purpose of enabling the borrower to deplete the 
security. Every day the plants operate, the 
amount of standing timber is reduced. The 
mills, railroad and logging equipment are use- 
less as security for a timber bond when the 
stumpage is exhausted. Logging equipment, 
railroad, sawmills and pulp mills are merely 
the bridge over which the tree travels to mar- 
ket. Such a bridge stripped of traffic is eco- 
nomic waste and has only a scrapping value 
as security for a loan on cut off timber land, 
The bridge must be a toll-bridge and colled 
for the loads that cross. The loan must be re- 
tired as rapidly as the timber is milled or man- 
ufactured into merchantable products. A sink- 
ing fund payable annually to be held until ma- 
turity of the bonds is not sound financing in 
timber or allied securities. These sinking 
funds call for the payment of a certain per- 
centage of the face of the loan to be deposited 
annually with a trustee or the treasurer of the 
company. This percentage is an amount usual- 
ly estimated to be sufficient to pay ofr the loan 
when all the timber is cut. The fate of sinking 

333 



334 TIMBER BONDS 

funds is notorious. The vicissitudes of com- 
mercial life are well known. Trust companies 
fail occasionally. Stock ownership changes 
hands with passing time. Managers die or re- 
tire and thus vary the policy over a period 
of twenty or thirty years. The group of men 
who contracted the debt that runs over a gen- 
eration or a life time rarely expect to be pres- 
ent at its payment. 

In a timber loan, where the property grows 
less valuable each operating year, the debt 
should mature in time to leave a safe margin 
of timber behind it. Bond dealers and trustees 
should not risk being forced to operate a mill- 
ing or pulp property in order to pay out the 
loan. Dividends should not be declared nor pro- 
fits paid while the property has a bonded debt. 
The principles applied to a railroad bond, 
where the values usually enhance with age, 
cannot be used in connection with a timber or 
coal property where each working year means 
less security under the mortgage. All serial 
bonds are not safe. Today there are outstand- 
ing serial timber bonds that are very risky. 
The security has been over valued, the timber 
over estimated or the sinking fund providing 
for semi-annual serial payments improperly 
based. The era of high finance in timber bonds 
is hovering around and to ward it ofT the ut- 
most care is necessary. In timber bonds as in 
other attractive investments there are the get- 
rich-quick concerns and the highly speculative 



STYLE OF BONDS 335 

operators. The greatest dangers to serial tim- 
ber bonds as floated at present are excessive 
sinking funds and the practice of passing on 
abstracts of titles instead of going to the orig- 
inal records at the county seats. There will be 
defaults in some timber bonds now outstand- 
ing. The object of this book is to show the 
bond dealer and investor how to avoid disaster 
and to furnish him the best available practical 
information. The preceding mortgages cover 
their field in a comprehensive manner ; the next 
chapter is devoted to actual circulars describ- 
ing issues now outstanding. A comparison of 
these documents will enable the student to 
choose the best features from each. The 
houses represented will be glad to send the 
originals to anyone on request. 



CHAPTER XII. 

BOND CIRCULARS. 

The circulars given in this chapter condense 
into small space the salient points of the is- 
sues they describe. The circular explains the 
leading features of the Trust deed, the nature 
of the security, the maturities, the stumpage, 
the mills, the shipping facilities, the invest- 
ment of stockholders, the financial condition of 
the borrower, the condition of the titles, the 
sinking fund and other features. The circular 
carries in brief form the best selling arguments 
of the issuing house. The circular covers the 
soundness, earning power and desirability of 
each issue. The circulars given here are put 
out by the most reliable timber bond houses 
and represent the best practice in the business. 

The chief criticism that can be made against 
them is that they do not state whether the titles 
are passed on from abstracts or from the 
original records. In order not to change the 
form of a circular more than necessary each 
one is headed Exhibit No. 1 to 22 inclusive, 
and carries the firm name at its end. 

EXHIBIT NO. 1. 

Parwell Trust Company, Chicago. The subscription list 
will open on November 14th, 1910, and close on or be- 
fore November 17th, 1910. Price Brothers & Com- 
pany, Limited. (Incorporated under the Laws of the 
Province of Quebec, Canada.) Capital, $5,000,000. 
336 



BOND CIRCULARS 337 

Offer of £1,000,000 five per cent first mortgage bonds, 
forming part of an authorized issue (closed mortgage) 
of £1,232,876 14s. 3d., being the sterling equivalent at 
4.86 2-3 of $6,000,000. Dated 1st November, 1910. Due 
1st November, 1940. Interest payable May 1st, No- 
vember 1st. 

The bonds will be issued to bearer in denominations of 
£200, £100, and £20; and are exchangeable for bonds in 
currency denominations of $1,000, $500 and $100. Ex- 
changes will be computed at the fixed rate of $4.86 2-3 per 
£1, fractions adjusted in scrip. Bonds may be registered 
as to principal. 

The Bonds are redeemable at the company's option (as 
to the whole issue) at 102% and accrued interest, before 
maturity, on November 1st, 1915, or on any interest date 
thereafter on three months' notice. The bonds may also 
be drawn at the same price on any interest date by the 
operation of the sinking fund. Principal and interest are 
payable in London, England, in sterling, and also in Mon- 
treal, Quebec and New York at the fixed rate of exchange 
of $4.86 2-3 to the £1. 

Royal Securities Corporation, Limited (of Canada), 
offer for sale £1,000,000 of the above bonds, at the price 
of 86 per cent., payable as follows, per £100 bond: 

£ 5 per cent $ 24.33 On application 

£21 " " 102.20 On 1st December, 1910 

£30 " " 146.00 On 1st February, 1911 

£30 " " 146.00 On 1st May, 1911 



£86@$4.86 2-3 $418.53 

Payment in full may be made on allotment under dis- 
count at the rate of 4 per cent, per annum. 

Subscriptions for bonds to be delivered in London 
(stamped), will be at the price of 87 and accrued interest. 

After payment of the installment due on allotment, 
Allotment Letters will be exchangeable for Provisional 
Script Certificates, bearing a coupon payable on May 1st, 
19-11, representing interest at 5 per cent, to that date from 
the due dates of the installments. Notice will be given 
when Script Certificates may be exchanged for Definitive 
Bonds bearing coupon due November 1st, 1911. 

The accompanying letter from Mr. William Price, the 
President, gives particulars of the Company, of the security 
for the bonds, and the object of the issue. The more sali- 
ent points of the letter may be summarized at follows: 

1. First Mortgage covering all fixed assets owned by 
the company. 



338 TIMBER BONDS 

2. The assets forming the security for the new bonds 
will amount to about $13,500,000, of which over $8,000,000 
represent freehold and leasehold timber and pulpwood 
lands constituting a security of constantly increasing 
value, owing to the rapid depletion of the available sup- 
plies of timber in the United States. 

3. The average earnings for the last three years 
amount to more than iy 2 times the interest on the £1,000,- 
000 of bonds, and the estimated earnings of the combined 
operations, after the completion of the paper mills, cover 
the amount required to meet the entire bond interest three 
times over. 

4. The past earnings have been derived from careful 
operation of the company's limits to the extent of only 
one-third of their capacity and after the construction of 
the new mills the business of the company will require the 
operation of the limits to the extent of only two-thirds of 
their capacity. 

5. The new paper mill is the development on a larger 
scale of the Jonquiere paper business which has been oper- 
ated profitably for several years past. 

6. A sinking fund of 2 per cent., cumulative, begin- 
ning 1915, will redeem practically the entire issue before 
maturity. 

The bonds are being offered simultaneously in Canada 
by Royal Securities Corporation, Limited, Montreal and 
branches, in London by Parr's Bank, Limited. 

PRICE BROTHERS & COMPANY, LIMITED. 

Quebec, P. Q., November 1st, 1910. 
Messrs. Royal Securities Comporation, Limited, 
164 St. James Street, 
Montreal, P. Q. 

Dear Sirs: — Referring to the 5 per cent, first mortgage 
sinking fund gold bonds of this company, I beg to sub- 
mit the following information: 

The business of Price Brothers and Company has been 
in existence for a century. It was incorporated under the 
Joint Stock Companies Incorporation Act of the Province 
of Quebec, November 28th, 1904 (and has since been 
brought under the Quebec Companies Act), for the manu- 
facture and sale of spruce and other lumber, ground wood 
pulp, sulphite-pulp and paper. The Capital Stock of the 
Company, authorized and fully paid, is $5,000,000, of which 
more than half is owned by members of the Price family. 
The company in itself, together with its ownership of all 
the assets or all the issued capital stock of the Price- 
Porritt Pulp and Paper Company (the latter free from lia- 



BOND CIRCULARS 330 

bilities) and of all the bonds and the total issued capital 
stock of the Jonquiere Pulp Company, owns and controls 
the following properties: 

TIMBER LANDS. 

The company owns and controls about 4,136,000 ,acres 
or arpents of timber and pulp-wood lands, consisting of 
about 128,000 acres or arpents of freehold and 4,008,000 
acres of leasehold all well timbered and located north and 
south of the St. Lawrence and Saguenay Rivers in the 
Province of Quebec. 

These lands contain over three thousand million feet 
(board measure) of merchantable timber and over twenty 
million cords of pulp-wood. 

TIMBER LICENSES. 

The company holds its licenses to cut timber from the 
Government of the Province of Quebec and these are 
renewable by the Company from year to year, subject to 
the Government regulations. 

For these licenses the company pays an annual ground 
rental of $5.00 per square mile, or about three-quarters of 
a cent per acre, and stumpage dues on all timber cut, 
according to the regulations of the Government of the 
Province of Quebec. (These rentals and stumpage dues 
do not apply to the freehold lands owned by the company.) 

The timber limits are easily workable and the prod- 
ucts have the home markets close at hand, besides being 
particularly well-situated to meet the demands of the 
British, United States and other foreign markets. 

The danger of fire is reduced to a minimum owing to the 
scattered nature of the different properties, the heavy 
rainfall and the efficient system of fire protection now in 
vogue in the Province of Quebec. 

The supply of timber may be deemed practically inex- 
haustible as the large area of the property permits of a 
careful system of conservation, so that there is a constant 
renewal of the growth of merchantable timber, and further 
the Government regulations limit the size of trees to be 
cut. 

At present the company limits are being worked to the 
extent of only one-third of their capacity. The construc- 
tion of the proposed Paper Mills will necessitate the work- 
ing of about two-thirds of the limits. 

EXISTING MILLS. 
Nine saw mills at Batiscan, Montmagny, Cap St. Ignace, 
Trois Saumons, Rimouski, Matane, Salmon Lake, St. Mar- 



640 TIMBER BONDS 

guerite, and Grand Bay, with a combined capacity of about 
1,000,000 feet (board measure) per day, give the company, 
during the ordinary operating season of six months, an 
annual capacity of about 100,000,000 feet. 

Three shingle mills at Rimouski, Matane, and Salmon 
Lake, with a combined capacity of 600,000 shingles per day. 

One rossing mill at L'Anse au Cheval. 

One ground-wood pulp mill at Rimouski, with a capac- 
ity of 7,500 tons of pulp per annum, which is sold prin- 
cipally to paper makers in the United States. 

Cardboard and paper mill at Jonquiere, including ros- 
sing mill, ground wood mill and sulphite pulp mill, with 
annual capacity of 8,000 tons of ground wood pulp, 2,600 
tons of sulphite pulp, together producing 6,000 tons of card- 
board and 4,000 tons of paper. 

Dwelling houses for employes, together with ware- 
houses, mill sites, sorting sheds, machine shops, water 
powers, electric light plants, railroad sidings, lumber 
yards, roads, wharves, piers, booms, dams and other river 
improvements, river tackle, tugs, lighters and other craft 
and logging camp equipment, and in fact, all appliances 
necessary to make the properties complete and up-to-ate. 

Insurance. In order to further insure the company 
against possible loss by forest fires, the timber limits 
have been divided into fifteen groups and fifteen policies 
have been effected at Lloyds providing against any loss in 
excess of £15,000 in each group of limits. 

The company also insures its mills and stock in 
amounts which vary according to the stock in hand. 

NEW PULP AND PAPER MILLS. 

The company will at once proceed with the construc- 
tion of new pulp and paper mills (with a daily capacity 
of 150 tons of newspaper), together with a concrete dam 
and hydraulic development of 14,000 h. p. under a head of 
280 feet, which will be more than sufficient for the opera- 
tions of the mills. 

The buildings will be of cement and steel construction 
throughout. 

The available water-power will permit of substantial 
extensions to the capacity of the mills, and the buildings 
will be constructed with this end in view. 

The combined capacity of the new pulp and paper 
mills when constructed added to that of the Jonquiere 
Pulp Company will be one of the largest in the Dominion 
of Canada. 

The mill site is in the heart of the company's timber 
limits on the Au Sable River, on which river, a short dis- 



BOND CIRCULARS 341 

tance from the new mills, the Jonquiere Company has for 
the past ten years been manufacturing pulp and, later, 
cardboard and paper. Conditions of manufacture, quality 
of wood and extent of water-power, confirmed by four 
years' actual records, are therefore clearly established. 
Construction and operation will be carried on under the 
supervision of Mr. O. A. Porritt, the company's manager 
at Jonquiere, and the undertaking may be regarded as 
perpetuating, on a much larger scale, the Jonquiere plant 
which to the extent of its capacity has been entirely sat- 
isfactory. 

Mr. Geo. P. Hardy, of New York, consulting engineer 
and paper mill expert, reports as follows: 

"In brief, I would say, in regard to the location of the 
mill at Au Sable Falls, that it offers, in my opinion, an 
exceptionally good opportunity for the manufacture of 
newspaper, and that I know of no better opportunity to- 
day in the Dominion." 

DESCRIPTION OP BONDS. 
The bonds for £1, 000, 000 sterling form part of an issue 
limited to $6,000,000 gold or its equivalent in sterling 
and are secured by a fixed and specific first mortgage and 
charge upon all the present immovable property of the 
company and by all the issued shares of the Price-Porritt 
Pulp and Paper Company or by all the immovable property 
presently owned by that company, and by all the issued 
shares and all the outstanding bonds of the Jonquiere 
Pulp Company; and will be similarly secured upon all 
future immovable property acquired by the company from 
the proceeds of the bonds and by a floating charge upon all 
the other assets of the company which include current 
assets, trade marks, etc. 

SINKING FUND. 

A cumulative sinking fund of 2 per cent, per annum 
will commence on May 1st, 1915; and annually thereafter 
a cash sinking fund of 2 per cent, of all bonds outstanding, 
plus an amount equal to the annual interest on all bonds 
redeemed through the sinking fund is to be paid to the 
trustee, and used to purchase and retire bonds at not 
exceeding 102% per cent, and accrued interest, or to call 
bonds at that price if not so purchasable. 

The sinking fund will redeem practically the entire is- 
sue of bonds before maturity. 

TITLES AND MORTGAGES. 
The titles to all the properties covered by this mort- 



342 TIMBER BONDS 

gage have been examined and approved by Messrs. Pent- 
land, Stuart & Brodie, of Quebec, who certify that all the 
said properties are free and clear of all liens, charges, 
encumbrances, or indebtedness. 

The titles, form of the deeds of conveyance, mortgage 
trust deed and bonds have been approved by A. J. Brown, 
K. C, of Messrs. Brown, Montgomery and McMichael of 
Montreal, P. Q. 

ASSETS. 
Messrs. James D. Lacey and Company, of Chicago, the 
well known timber valuers, under date of 19th July, 1910, 
place the following valuation on the properties: 
About 3,793,000 acres of leasehold, and 128,000 
acres or arpents of freehold timber and pulp- 
wood lands found to contain about 3,149,500,- 
000 feet (board measure) of timber, and over 
20,665,000 cords of pulpwood $8,085,875 

Nine saw mills at Batiscan, Montmagny, Cap St. 
Ignace, Trois Saumons, Rimouski, Matane, Sal- 
mon Lake, St. Marguerite, and Grand Bay .... 

Three shingle mills at Rimouski, Matane, and 
Salmon Lake 

The Price-Porritt Pulp Mills at Rimouski 

Sundry real estate, wharves, water powers, and 
other properties at Chicoutimi, L'Anse, St. 
Jean, Metis, St. Catherines Bay, Petit Sague- 
nay, etc 842,500 

Jonquiere Pulp Company: About 215,000 acres 
leasehold timber limits; saw mill, chemical 
pulp mill, ground wood pulp mill and card- 
board and paper mill; three water powers, two 
of which are developed to produce 3,700 h. p. 
(the third of 14,000 h. p. mentioned above, 
will be developed in connection with the new 
pulp and paper mills) ; electric power plant 
supplying light and power to the town of Jon- 
quiere and the Jonquiere Mills; houses, build- 
ings, piers, booms, and all other accessories 
necessary to a pulp, paper and lumber business. 1,000,000 



$9,928,375 
To the above will be added the net liquid assets 
of the company in excess of current liabilities, 
(less the amount required to redeem the out- 
standing bonds,) which will be used for the 
purchase of all the ^bonds of the Jonquiere 
Pulp Company, amounting to $190,000, for the 



BOND CIRCULARS 343 

construction of new pulp and paper mills, of a 
new saw mill and for working capital, say not 
less than 3,600,000 



$13,528,375 



Messrs. James D. Lacey and Company report further: 
"The limits and freeholds controlled by this company 
are essentially spruce, balsam, cedar and pulp wood prop- 
ositions, and they are unquestionably among the best tim- 
bered and most desirably located properties in the Prov- 
ince of Quebec. Further, this company is in a most envi- 
able position in regard to the control of the numerous 
driveable streams penetrating their vast holdings. Valu- 
able concessions, water powers and other important rights 
have been secured, and a more practical system of boom- 
age, dams and other river improvements for the safety and 
quick delivery of their logs during the short driving sea- 
sons would be difficult to devise." 

SALES. 

The company is the largest manufacturer of spruce 
lumber in Canada. Almost the entire output has been 
sold in the European, United States and South American 
markets. 

The average sales during the last five years have been 
about 72,000,000 feet of timber, 66,000,000 shingles, and 
240,000 ties per annum. 

EARNINGS. 

The average yearly net earnings of Price Brothers and 
Company for the five years from March 31st, 1899, to 
March 31st, 1904, and for the five years from November 
30th, 1904, to November 30th, 1909, as audited and certi- 
fied by Geo. Creak, C. A., including those of the Jonquiere 
Pulp Company and Price-Porritt Pulp and Paper Company 
for the three years from November 30th, 1906 to November 
30th, 1909, as audited and certified by Messrs. Creak, 
dishing and Hodgson, C. A., amount to $336,680.79. 

The earnings of the three companies as audited and 
certified by the above accountants for the last three years 
ending November 30th, 1909, after charging all manu- 
facturing, selling and general expenses, including main- 
tenance and depreciation of the various plants (no other 
provision being necessary in view of the low book values 
of the properties), but before .charging interest on bonds 
and loans, have been as follows: 



344 TIMBER BONDS 

1907 1908 1909 

Price Brothers and 

Company, Limited. . .$391,141.73 $224,082.93 $276,283.68 
The Jonquiere Pulp 

Company 65,823.76 45,993.10 88,167.20 

Price-Porritt Pulp and 

Paper Company 17,894.66 13,452.83 34,316.09 



$474,860.15 $283,528.86 $398,766.97 

The average yearly earnings of the above companies 
for the past three years thus amount to $385,718.66, al- 
though 1908 was a bad year resulting from general indus- 
trial depression. 

The timber limits have been worked to only one-third 
Of their capacity, while taxes and dues on the whole of 
the property (including the two-thirds un worked) have 
been paid to the Government, and charged against the 
earnings. 

ESTIMATED PROFITS. 
It is estimated that the earnings of the above com- 
panies for the fiscal year of 1910 will amount to $400,000 
and that the new mills, including a new saw mill, when 
completed, will produce an additional profit amounting to 
about $500,000. These estimated earnings of $900,000 are 
three times the interest charges on the total issue of 
$6,000,000 bonds. 

Yours faithfully, 
PRICE BROTHERS & COMPANY, LTD., 
(Signed) William Price, President. 

Applications must be made on the accompanying form 
and forwarded, with a cheque for the amount due on 
application, to Royal Securities Corporation, Limited, 75 
Lombard Street, London, E. C. If only a portion of the 
amount applied for be allotted, the balance of the deposit 
will be applied towards the payment due 1st December, 
1910. Interest at the rate of 5 per cent, per annum will 
be charged on all installments not paid on the due dates. 
Failure to pay any installment when due will render the 
amount previously paid liable to forfeiture. 

Application will be made in due course to the Commit- 
tee of the London Stock Exchange for an official quotation 
of the bonds. 

Holders of existing 6 per cent, bonds of Price Brothers 
& Company, Limited, may deliver their bonds at 165 per 
cent, and interest on account of payment for allotments. 



BOND CIRCULARS 345 

DIRECTORS AND OFFICERS. 

William Price, M. P., Quebec, President of the Company, 
Vice-President, Union Bank of Canada. 

Geo. H. Thomson, Quebec, Vice-President of the Com- 
pany, Director, Union Bank of Canada. 

Edward G. Price, London, Director, Price & Pierce, 
Limited. 

Wm. S. Hofstra, New York, Director, Diamond Match 
Company. 

Ion Hamilton Benn, M. P., London, Director, Price & 
Pierce, Limited, Director, Canadian Car and Foundry 
Company, Limited. 

Gustavus G. Stuart, K. C, Quebec, Director, Quebec 
Bank. 

H. S. Holt, Montreal, President, Royal Bank of Canada, 
Montreal Light, Heat and Power Company. 

Granger Farwell, Chicago, President, Farwell Trust 
Company. 

James Redmond, Montreal, Director, Royal Bank of 
Canada. 

Henry E. Price, Quebec, Secretary-Treasurer of the 
Company. 

HEAD OFFICE— Quebec, Canada. 

BANKERS — Bank of Montreal. Union Bank of Canada. 
TRUSTEES— Montreal Trust Company. 
TRUSTEE FOR SINKING FUND— Trustees, Executors & 

Securities Insurance Corporation, Limited. 
AUDITORS— Messrs. Creak, Cushing & Hodgson, C. A., Mon- 
treal. Messrs. Geo. A. Touche & Company, London, 

England. 

ROYAL SECURITIES CORPORATION, LIMITED. 

164 St. James Street, Montreal. 

Toronto Halifax. Quebec. London, England. 

Subscriptions will be received, in behalf of Royal Securities 

Corporation, Ltd., by 

FARWELL TRUST COMPANY, 

226 LaSalle Street, 

Chicago. 

EXHIBIT NO. 2. 

McCOY & COMPANY, 105 S. LaSalle St., Chicago. 

GUARANTEED FIRST MORTGAGE TIMBER LAND 
BONDS. 
An issue of Short Time First Mortgage Bonds which are 
the direct obligation of one of the largest timber- 



346 TIMBER BONDS 

holding and operating lumber companies in the 
United States. Principal and interest unconditionally 
guaranteed by William T. Joyce Company, whose net 
assets, exclusive of any interests in the Tremont 
Lumber Company, are represented to be over twice 
the amount of this present bond issue. The mortgage 
security consists of about 170,000 acres of virgin pine 
timber lands, of which 70 per cent are owned in fee 
simple, estimated to contain 1,238,061,343 feet of virgin 
pine and other timber, with three mill plants, etc., con- 
servatively worth $7,500,000, or three times the amount 
of the present bond issue. 
We offer, subject to prior sale, at par and interest: 
$1,500,000 First Mortgage 6 per cent. Serial Gold 
Bonds of Tremont Lumber Company, Winnfield, La.. 
Capital and surplus, $6,871,531.93. 
Officers and Directors: Samuel J. Carpenter, President, 
Winnfield, La.; David G. Joyce, Vice-President, Chi- 
cago, 111.; James Stanley Joyce, Sec'y and Treas., 
Chicago, III.; Thomas Hume, Muskegon, Mich.; Eugene 
• J. Carpenter, Minneapolis, Minn. 
Principal and interest unconditionally guaranteed by Will- 
iam T. Joyce Company. 
Dated November 1, 1910. Coupon bonds, $1,000, with 
privilege of registration as to principal. Interest pay- 
able semi-annually (May 1st and November 1st). Call- 
able May 1, 1911, or on any interest date thereafter, 
at 102 and interest, upon 60 days' previous notice to 
the trustee. Bonds offered mature as follows : 
$150,000 May 1, 1911 $150,000 Nov. 1, 1913 

150,000 Nov. 1, 1911 150,000 May 1, 1914 

150,000 May 1, 1912 150,000 Nov. 1, 1914 

150,000 Nov. 1, 1912 150,000 May 1, 1915 

150,000 May 1, 1913 150,000 Nov. 1, 1915 

Principal and interest payable at Interstate Trust & Bank- 
ing Company, New Orleans, La., Trustee, or Conti- 
nental and Commercial National Bank, Chicago, 111. 
The Southern pine forests today furnish the raw mate- 
rial for over 30 per cent, of the entire lumber cut of the 
United States. The drain upon them has been such that 
the United States Forestry Service estimates their con- 
sumption within the next twenty years. The value of 
Southern pine timber lands is constantly increasing with 
the depletion of the existing supply. Louisiana pine tim- 
ber is not subject to fire hazard owing to freedom from 
undergrowth and height of trees. 

The timber, under this mortgage was cruised in detail 
by Messrs. James D. Lacey & Company, Chicago, 111., who, 



BOND CIRCULARS 347 

in their report, advise us that in respect to quality of tim- 
ber, accessibility and economies of logging, it is one of the 
best timber properties they have ever examined in the 
South. 

This Mortgage to the Interstate Trust & Banking Com- 
pany, New Orleans, La., Trustee, is a first lien on about 
170,000 acres of virgin timber lands (70 per cent, owned 
in fee), exceptionally well grouped, heavily timbered with 
long-leaf yellow pine and hardwoods, located in Jackson, 
Ouachita, Caldwell, Winn, Grant and La Salle Parishes, 
Louisiana (see map attached for location) and three mod- 
ern mill properties. 

TIMBER ESTIMATES. 
The timber properties under this mortgage have been 
cruised and estimated by Messrs. James D. Lacey & Com- 
pany, Public Estimators, Chicago, who estimate that on the 
approximately 170,000 acres of land above mentioned and 
examined by them, there is contained the following kinds 
and amount of timber, namely: 

Pine 1,167,522,343 ft. 

Hardwoods 70,539,000 ft. 

Total timber 1,238,061,343 ft. 

They also state that from their examination of the 
properties, they do not hesitate to say that in respect to 
quality of timber, accessibility and economies of logging, 
it is among the best timber properties they have ever ex- 
amined in the South. 

MANUFACTURING PLANTS. 

The three mills of the company are located and equipped 
as follows: 

Eros — A double-band saw mill, steam dry kilns and 
planing mill, with a daily 10-hour capacity of 100,000 ft. 

Jonesboro — A double-band saw mill, steam dry kilns, 
planing mills, sheds, etc., with a daily 10-hour capacity of 
100,000 ft. 

Rochelle — Two double-cutting nand mills and gang, 
steam dry kilns, planing mills and shed room, with a 
daily 10-hour capacity of about 175,000 ft. 

These plants are situated on the line of the Tremont 
& Gulf Railway, which connects with the following trunk 
lines: 

The Vicks*burg, Shreveport & Pacific Ry., at Tremont, 
La. 

The Chicago, Rock Island & Pacific Ry., at Jonesboro, 
Dods'on and Winnfield, La. 



348 TIMBER BONDS 

The Louisiana & Arkansas and the Louisiana Railway 
& Navigation Company, at Winnfield, La. 

The St. Louis, Iron Mountain & Southern Ry., at Ro- 
chelle, La. 

Thus giving unusual facilities for reaching all lumber- 
consuming territory under favorable freight rates. 

VALUE OP PROPERTIES. 

The market value of the timber under the mortgage is 
conservatively estimated at upwards of $6,000,000 and the 
mill properties and appurtenances at $1,500,000, making a 
reasonable valuation of the combined properties under this 
mortgage of $7,500,000. These estimates do not take into 
account the worth of the land owned in fee, which adds 
considerably to the value of the security under the mort- 
gage. 

PURPOSE OF BOND ISSUE. 

The total authorized bond issue is $4,000,000, of which 
$2,500,000 are presently to be issued. The remainder, 
$1,500,000, can only be issued for the purchase of addi- 
tional timber lands or timber situated in the Parishes of 
Jackson, Winn, Caldwell, La Salle, Grant, Ouachita, Lin- 
coln, Bienville and Catahoula, in the State of Louisiana, 
adjacent to or near the above described lands, at a rate of 
not exceeding $2.00 per thousand feet, board measure, as 
shown by the timber estimates of Messrs. James D. Lacey 
& Company, or such other estimators as shall be satisfac- 
tory to the Trustee. At least seventy per cent. (70%) of 
such additional timber held under this mortgage must 
be on lands owned in fee simple. 

Of the $2,500,000 bonds presently to be issued, $1,500,- 
000 are the bonds offered herein, the remaining $1,000,000 
are held in escrow by the company pending its future re- 
quirements. From the proceeds of the sale of the present 
issue of bonds all the floating indebtedness of the company 
will be retired and additional working capital provided. 

TITLES AND MORTGAGE. 

The titles to the lands and property covered by this 
mortgage have been carefully examined and certified by 
our counsel, Messrs. Adams & Candee, Chicago, under 
whose legal direction the mortgage and bonds were pre- 
pared. The form of bond and mortgage, and execution 
thereof, have also been approved by Messrs. Howe, Fenner, 
Spencer & Cocke, New Orleans, attorneys for the Trustee. 



BOND CIRCULARS 349 

SINKING FUND. 

The mortgage provides under careful restrictions that 
before the company can in any way have access to any of 
the timber covered by this bond issue, it must deposit in 
advance with the Trustee $3.00 per thousand feet, based 
on the estimates of Messrs. James D. Lacey & Company, 
filed with the Trustee. This Sinking Fund applies to the 
payment of the principal only, and should the deposits 
under this Sinking Fund exceed the amount of bonds 
maturing in any year, the Trustee is required to purchase 
bonds of this issue which may be offered at not exceeding 
102 and interest, or at the request of the company it may 
call bonds at 102 and interest in amount sufficient to 
exhaust the surplus monies in hand. 

GUARANTORS. 
These bonds, principal and interest, are unconditionally 
guaranteed by William T. Joyce Company, whose net 
assets, exclusive of their interest directly or indirectly in 
this property, are represented to be over twice the amount 
of the present bond issue. 

BUSINESS OF THE COMPANY. 
The Tremont Lumber Company is a consolidation of 
the South Arkansas Lumber Company, Winn Parish Lum- 
ber Company and the Louisiana Lumber Company, Ltd., 
and until recently was purely a manufacturing company. 
It now directly owns approximately 1,400,000,000 feet of 
virgin pine timber in the State of Louisiana, which, ac- 
cording to Messrs. Lacey & Company's report, may be con- 
sidered one of the finest bodies of pine in the South and is 
especially attractive on account of the cheap logging cost. 
The company sells its output through its sales department 
directly to retail lumber dealers and railroads, and not 
through jobbers. The capacity of the three plants now in 
operation will approximate 150,000,000 feet per year. At 
the Rochelle plant the entire product of the mill is kiln 
dried; all of the stock is carried under cover, there being 
no lumber yards nor lumber piled outside. The lumber is 
transported from the mill to the sheds, planing mill and 
the loading tracks by a newly erected monorail system. 
This apparatus was installed at a very large cost, but the 
economy effected in handling the lumber justifies the 
expenditure. The railroad and logging equipment at all 
the mills is modern and efficient; the number of camps 
operating is three, one for each mill. 



350 TIMBER BONDS 

FIRE HAZARD. 

Timber located in the southern states has never been 
destroyed by fire. This statement can be verified by lum- 
bermen and other persons familiar with southern timber. 
Any serious damage by fire is practically impossible be- 
cause of the absence of undergrowth and the height of 
the trees. This is one of the most important facts in con- 
nection with this security. 

We have checked the security offered for this loan' in 
our usual careful manner and recommend these bonds for 
investment. Telegraphic orders may be sent at our ex- 
pense and bonds will be delivered to any responsible bank, 
expressage prepaid, payable in Chicago or New York ex- 
change. 

All statements herein are official or based on informa- 
tion which we regard as reliable, and while we do not 
guarantee them, they are the data upon which we have 
acted in the purchase of these securities. 

Bonds are offered subject to prior sale and advance in 
price. 

McCOY & COMPANY, 

105 So. LaSalle St., 

Chicago. 

EXHIBIT NO. 3. 

Lyon, Gary & Company, Lumbermen and Bankers, Chicago. 

$1,500,000 Linn & Lane Timber Company (operating in 
Oregon) 6 per cent. First Mortgage Serial Gold Bonds. 
Dated June 6, 1910. Due semi-annually Dec. 1, 1911, to 
June 1, 1927. Redeemable at 102% and interest, in 
whole or in part, on any interest day, on ninety days' 
published notice. Principal and interest payable in 
Chicago June 1st and Dec. 1st. Coupon bonds of 
$1,000 and $500 each; may be registered as to prin- 
cipal. Union Trust Company of Chicago, and F. H. 
Rawson, Chicago, Trustees. 
Principal and interest guaranteed by endorsement hy 
Charles A. Smith, Minneapolis, Minn. 
For fuller particulars regarding these bonds and the 
property under the mortgage, we refer to the letter ad- 
dressed to us by the guarantor, Mr. Chas. A. Smith, printed 
on the following pages. 

Copies of the opinions of the timber experts and of our 
attorneys covering the validity of the bonds and the lien 
of the mortgage on the lands and timber, may be seen on 
application at our office. 



BOND CIRCULARS 351 

The security for the bonds may be summarized from 
these letters and opinions as follows: 

1. First mortgage lien on approximately 70,000 acres 
of virgin timber lands and timber in Linn, Lane, Coos, 
Curry, Douglas and Lincoln counties, all being located in 
the western part of the State of Oregon, estimated to con- 
tain over 4,300,000,000 feet of fir, cedar and other timber, 
including some pine and hemlock. 

2. Our experts state that the timber may be con- 
servatively valued at $1.00 per thousand feet, or $4,300,000 
in all, while their estimates show that the bonds, amount- 
ing to $1,500,000, are issued at the low rate of 34% cents 
per thousand feet. 

3. Secured also by first mortgage lien oil a modern 
lumber manufacturing plant valued at $200,000, and having 
a capacity of 150,000 feet for each ten-hour day. 

4. The management is in the hands of successful and 
experienced lumbermen, the guarantor being reputed to 
be worth many times the amount of the bond issue. 

5. The margin of security increases as the serial in- 
stallments are paid at the ratio of seven to one, and the 
redemption fund will retire all the bonds before 15 per 
cent of the timber is cut. 

6. Under the trust deed the trustee must first receive 
payment before any timber may be cut or released from 
the lien of the mortgage, payments for timber to be cut, 
being at the rate of $2.50 per thousand feet. Contracts 
have already been executed providing for the sale of at 
least 30,000,000 feet of timber per annum at $3.00 per 
thousand feet for fir and $6.00 per thousand feet for cedar 
with a rising scale of prices. 

7. Frequent inspection of the property is arranged for 
at the expense of the borrower. The valuations, titles and 
legal matters have been passed on by well known authori- 
ties. 

8. The fire hazard is minimized: By the separation 
of the property into two tracts of nearly equal value; by 
the location of the timber in the fog laden counties on the 
Pacific Coast and west of the Cascade Mountains; by 
efficient fire patrols, Government and private, and by the 
provisions of the mortgage for the payment to the Trustee 
at the rate of $1.00 per thousand feet for timber dam- 
aged for any cause, with $1.50 per thousand feet addi- 
tional for any such timber cut. 

9. The increasing scarcity of timber has resulted in a 
constant enhancement in value. 

Price on application. 



352 



TIMBER BONDS 



LINN & LANE TIMBER COMPANY 

(Operating in Oregon) 

First Mortgage Serial 6% Gold Bonds 

Dated June 6, 1910. Due serially, maturities as below. 

Interest payable in Chicago June 1st and 

December 1st. 

Principal and interest guaranteed by Endorsement by 

CHARLES A. SMITH, MINNEAPOLIS, MINN. 



MATURITIES. 



$25,000 
25,000 
25,000 
25,000 
25,000 
25,000 
50,000 
50,000 
50,000 
50,000 
50,000 



Dec. 1, 
June 1, 
Dec. 1, 
June 1, 
Dec. 1, 
June 1, 
Dec. 1, 
June 1, 
Dec. 1, 
June 1, 
Dec. 1, 



1911 
1912 
1912 
1913 
1913 
1914 
1914 
1915 
1915 
1916 
1916 



$50,000 
50,000 
50,000 
50,000 
50,000 
50,000 
50,000 
50,000 
50,000 
50,000 
50,000 



June 1, 
Dec. 1, 
June 1, 
Dec. 1, 
June 1, 
Dec. 1, 
June 1, 
Dec. 1, 
June 1, 
Dec. 1, 
June 1, 



1917 
1917 
1918 
1918 
1919 
1919 
1920 
1920 
1921 
1921 
1922 



$50,000 
50,000 
50,000 
50,000 
50,000 
50,000 
50,000 
50,000 
75,000 
75,000 



Dec. 1, 
June 1, 
Dec. 1, 
June 1, 
Dec. 1, 
June 1, 
Dec. 1, 
June 1, 
Dec. 1, 
June 1, 



1922 
1923 
1923 
1924 
1924 
1925 
1925 
1926 
1926 
1927 



The following letter has been addressed to us by Mr. 
Chas. A. Smith: 

Dear Sirs: — 

In compliance with your request for information rela- 
tive to the $1,500,000 6 per cent. First Mortgage Gold Bonds 
of the Linn & Lane Timber Company, recently sold you, I 
submit the following: 

SECURITY. 

The Linn & Lane Timber Company was organized as a 
timber investment company, and now owns free of any 
incumbrance, other than the first mortgage bond issue, at 
least 70,000 acres of timber land together with 3,500 acres 
upon which the timber only is owned. Of this acreage 
owned in fee, approximately 35,000 acres are located in 
Coos, Douglas, Curry and Lincoln Counties, and approxi- 
mately 35,000 acres in Linn and Lane Counties. The 
above tracts of land are well located for economical opera- 
tion and have stood a severe examination as to quality 
and quantity. All of this property, including the timber 
mentioned above, is covered by the first mortgage lien of 
the bonds sold to you. The lands contain, according to 
my own estimate and belief, in excess of 5,000,000,000 feet 
of timber, the largest part of which is fir. I value the 
whole property at not less than $5,000,000. 

The timber in Linn and Lane Counties is practically 
in one compact tract and lies only about 20 miles east of 



BOND CIRCULARS 353 

the Southern Pacific Railroad. It was bought for a per- 
manent investment and I believe is one of the best tracts 
of its size of fir timber, considering quantity per acre and 
quality, on the Pacific Coast. I have been offered more 
than $2,250,000 for this tract, but declined to sell. 

The timber in Coos, Curry, Douglas and Lincoln Coun- 
ties is located among and intermingled with other large 
holdings of mine, title to which lies in the C. A. Smith 
Timber Co. of Oregon. All the lands in these latter coun- 
ties I plan to operate and will, within a short time, be 
cutting with the two mills owned by the C. A. Smith 
Lumber & Manufacturing Co. located at Marshfield, Oregon, 
on Coos Bay, one of the good harbors of the Pacific Coast, 
at the rate of 150,000,000 feet per annum. The mill now 
operating is cutting between 7,000,000 and 8,000,000 feet 
per month, or at the rate of about 85,000,000 feet per year 
and we plan to raise this to 100,000,000 feet per year. 
We will very shortly start up the other mill, known as the 
Dean Mill, and I expect to have an output here of approx- 
imately 4,000,000 feet per month, or say 45,000,000 feet per 
year, to be later increased to 50,000,000 feet per year, all 
of these estimates being based on ten hour days. If desir- 
able this output can of course be doubled by means of two 
shifts. 

The bond issue covers by first mortgage this Dean Mill. 
The plant is worth in excess of $200,000. 

I expect to be able to cut this amount of timber per 
year, deliver the logs to the mills, manufacture it and put 
the finished lumber on our docks (at San Francisco) at a 
cost of $7 per thousand feet. Fir is now selling in San 
Francisco at an average price of $14 per thousand feet. 
A fair average price over a period of years would be, in my 
opinion, from $15 to $18 per thousand feet. Washington 
and Oregon Fir may be compared in its uses and price to 
the yellow pine of the South. As the most generally 
used wood on the Coast it finds employment for heavy 
structural work, large timbers, car sills, sidings and deck- 
ing, for flooring and in fact for almost all general uses. 

We own at Suisan Bay, near San Francisco, a large dis- 
tributing yard. We also own two steamers having a car- 
rying capacity of 2,250,000 feet of timber. 

The Linn & Lane Timber Co. has entered into a con- 
tract, (subject to the Trust Deed) with the C. A. Smith 
Lumber and Manufacturing Co., which latter concern has 
a paid in capital of $2,500,000, whereby the Manufactur- 
ing Company agrees to cut off the timber in Coos, Curry, 
Douglas and Lincoln Counties, or pay for without cut- 
ting, at least 30,000,000 feet per year. 



354 TIMBER BONDS 

The price to be paid the Linn & Lane Timber Company 
being $6 per thousand feet for cedar and $3 per thousand 
feet for fir so cut during the year 1910, with an advance 
of 50 cents per thousand feet for cedar and an advance 
of 25 cents per thousand feet for fir each year thereafter 
until 1918. The agreement runs until 1935, eight years 
after the expiration of the last maturing bond under this 
mortgage, but on December 31, 1918, and again on Decem- 
ber 31, 1928, it is stipulated that the prices to be paid for 
timber by the said Manufacturing Company shall be read- 
justed, but in no event shall they thereafter be less than 
$8.50 for each thousand feet of cedar and $4.25 for each 
thousand feet of fir. 

It will be seen from the above that by this agreement 
the Linn & Lane Timber Company should have a substan- 
tial annual income from this source. 

REDEMPTION FUND: For all timber proposed to be 
cut and manufactured into lumber, the mortgage requires 
the Linn & Lane Timber Company to deposit with the 
Trustee (prior to the cutting of the timber) at the rate of 
$2.50 per thousand feet log scale based upon the estimates 
of the timber filed with the Trustee, which payment is at 
the rate of over seven times the amount of the loan, and 
will insure the whole loan being paid when 600,000,000 feet 
are cut. 

The Company is required to account to the Trustee for 
all timber, and the provisions of the mortgage covering 
this point are carefully and strictly drawn. Provision is 
made in the mortgage for inspection by the Trustee or 
its agents of the mortgaged property at intervals of six 
months, the cost of this inspection to be borne by the Tim- 
ber Company. 

All monies received by the Trustee from the above 
sources constitute a fund to retire principal only of this 
issue. Should the deposits exceed the amount required to 
pay the bonds maturing in any one year, the Trustee is re- 
quired to purchase or call for redemption at a premium of 
2% per cent and accrued interest the bonds next maturing 
to an amount sufficient to practically exhaust such de- 
posits. 

HAZARDS: The Timber Company, under the terms of 
the mortgage, is required in case of any damage by fire, 
wind or elements to any of the timber securing the bonds to 
promptly pay to the Trustee $1 per thousand feet for such 
timber so damaged, which payment, however, shall not re- 
lease such timber from the lien of the mortgage, but for 
such release an additional payment of $1.50 per thousand 
feet at the time of cutting is required. 



BOND CIRCULARS 355 

The timber in Coos, Curry, Douglas and Lincoln Coun- 
ties is scattered among my other holdings over a consider- 
able area, and the timber in Linn and Lane Counties is 
separated from that in the other counties by a distance of 
from 100 to 125 miles. The timber is so separated that, in 
my opinion, it is hardly conceivable that an amount of the 
timber sufficient to imperil the bond issue could be de- 
stroyed by any accident. 

The timber is located between the western slope of the 
Sierras and the Pacific Coast, and this country is subject 
to heavy rains and fog which, to a large extent, eliminate 
the fire hazard. Danger from fire has been further greatly 
lessened by the greater care now being exercised by all 
the larger lumbermen to protect their interests. In addi- 
tion to the Government fire patrol my companies and other 
large holders of timber have organized our own patrol sys- 
tems which work in unison. Provision is made in the Trust 
Deed for the maintenance of a fire patrol system under 
penalty. 

In view of the fact that I personally guarantee both 
principal and interest of the Linn & Lane 6 per cent Bonds 
it may interest you to know that in addition to our output 
on the Coast my Minnesota companies now have an output 
of 75,000,000 feet per year and by the time the Minnesota 
lands are cut we expect to have in operation on my sugar 
pine properties in California a mill with a capacity of 
from 40,000,000 to 50,000,000 feet per year. In other words, 
our companies are now producing over 200,000,000 feet of 
lumber per annum and we are planning to maintain at 
least this standard of production. 

Aside from small interests owned by men connected with 
the management, I own all of the capital stock of the 
Linn & Lane Timber Company and the C. A. Smith Lumber 
& Manufacturing Co., and the C. A. Smith Timber Co. of 
Oregon. I am also principal owner of the C. A. Smith Lum- 
ber Co. and the C. A. Smith Timber Co. of Minneapolis, 
two very successful and profitable concerns. I own, in 
addition, upwards of 100,000 acres of timber land in Califor- 
nia and Oregon, unencumbered and have interests in other 
manufacturing and mercantile companies, banks, etc. 

Yours very truly, 

July 2, 1910. C. A. SMITH. 

GUARANTEE: Mr. Charles A. Smith, the guarantor 
of both the principal and interest of these bonds, and his 
allied companies are among the largest timber owners and 
lumber manufacturers in the United States. He is presi- 
dent of, and with other members of his immediate family 
principal owner, aside from some small interests owned by 



356 TIMBER BONDS 

the men connected with the management, of the following 
companies: 

Linn & Lane Timber Company. 
C. A. Smith Lumber and Manufacturing Company. 
C. A. Smith Timber Company of Oregon. 
Smith-Powers Logging Company. 
C. A. Smith Lumber Company of Minneapolis, Minn. 
C. A. Smith Timber Company of Minneapolis, Minn., etc. 
From reliable statements submitted Mr. Smith's net 
worth is shown to be many times the amount of this bond 
issue. 

TIMBER ESTIMATES: Careful estimates of the tim- 
ber on this property were made for us by J. P. Brayton, a 
well known and competent cruiser. Messrs. Lyon, Gary & 
Co., have in turn, through their own expert cruisers, 
checked this report to their complete satisfaction. Mr. 
Brayton's detailed estimate, and Lyon, Gary & Company's 
check of same may be seen at our office, or a resume will 
be sent on request. 

Average 
Per Acre 
Acres Feet Log Scale 

Coos, Curry, Douglas and 

Lincoln Counties 35,000 1,970,000,000 56,000 

Linn and Lane Counties. .35,000 2,402,000,000 68,000 
The above estimates consist in detail of the following: 

Feet 

Fir 3,803,000,000 

Cedar 57,700,000 

Port Orford Cedar 104,270,000 

Hemlock 315,565,000 

Larch and White Pine 19,265,000 

Spruce 63,895,000 

Other Timber 7,755,000 



4,351,450,000 
having a value, based on a conservative price of $1.00 per 
thousand feet, in excess of $4,300,000. These estimates are 
based upon log scale, uncut merchantable timber. The 
timber is of good quality, and the situation is favorable 
from a logging and lumbering standpoint. The mill at 
Coos Bay, also under the mortgage, is valued at over 
$200,000. 

TITLES AND MORTGAGE: The titles to the lands 
covered by this mortgage have been carefully examined 
on the ground from the records themselves by our coun- 
sel. All legal details relating to the examination of titles, 
preparation of the trust deed, etc., have been in charge of 



BOND CIRCULARS S57 

Mr. W. W. Gurley, of Chicago, and Mr. E. E. Barthell, of 
Nashville, Tenn., the latter a specialist on timber land 
titles. 

Prices of bonds for long or short maturities on applica- 
ation. 

LYON GARY & COMPANY, 

Lumbermen and Bankers. 

204 Dearborn Street. Telephone Central 1147. Chicago, 111. 

EXHIBIT NO. 4. 

Peabody, Houghteling & Co., 105 S. La Salle Street, Chi- 
cago. Cable address: "Hought," Chicago. Codes used, 
Lieber and A. B. C. 5th edition. Circular No. 725, 
February, 1911. (Established 1865.) 

$1,200,000 First Mortgage 6 Per Cent Serial Gold Bonds 
issued by the Panhandle Lumber Company, Limited, 
of Spirit Lake, Idaho. 

Dated February 1st, 1911. Payable in series as below. Re- 
deemable in the reverse of their numerical order on 
interest dates at 105 and interest. Coupon bonds of 
$1,000 and $500 each, with privilege of registration 
as to Principal. Principal and Semi-Annual Interest 
payable at the First National Bank of Chicago and the 
First National Bank of New York. First Trust and 
Savings Bank, Chicago, Trustee. 

MATURITIES. 

Amount Term Date Maturing 

$60,000 V 2 year August 1, 1911 

60,000 1 year February 1, 1912 

60,000 iy 2 years August 1, 1912 

60,000 2 years February 1, 1913 

60,000 2% years August 1, 1913 

60,000 3 years February 1, 1914 

60,000 3% years August 1, 1914 

60,000 4 years February 1, 1915 

60,000 4V 2 years August 1, 1915 

60,000 5 years February 1, 1916 

60,000 5% years August 1, 1916 

60,000 6 years February 1, 1917 

60,000 QY 2 years August 1, 1917 

60,000 7 years February 1, 1918 

60,000 iy 2 years August 1, 1918 

60,000 8 years February 1, 1919 

60,000 8% years August 1, 1919 

60,000 9 years February 1, 1920 

60,000 §y 2 years August 1, 1920 

60,000 10 years February 1, 1921 



358 TIMBER BONDS 

These bonds, which are issued for the refunding of the 
Company's floating indebtedness, are secured by a closed 
First Mortgage upon all the property now owned and that 
may hereafter be acquired by the Panhandle Lumber Com- 
pany, Limited, including lands and standing timber in the 
Counties of Kootenai and Bonner in the State of Idaho, 
and in the Counties of Spokane and Stevens in the State 
of Washington, aggregating 89,294 acres of land and 943,- 
978,490 feet of standing timber owned in fee simple, to- 
gether with two fine modern saw mills, having a normal 
capacity of 100,000,000 feet of finished lumber per annum. 

VALUATION OF SECURITY. 

Lands and standing timber owned in fee $3,562,770.67 

Farm lands and city real estate 75,050.75 

Plants and equipment 1,544,240.45 

Total fixed assets $5,182,061.87 

Cash and cash assets, net 971,692.77 

Total assets $6,153,754.64 

ACTUAL INVESTMENT IN THE! PROPERTY. 

Cash investment of stockholders $3,080,488.79 

Investment of bondholders 1,200,000.00 

Total actual investment $4,280,488.79 

The stockholders, therefore, have behind the bonds an 

actual cash investment of more than two and a half times 

the total issue. 

EARNINGS. 

Net earnings in 1910 applicable to the payment 

of principal and interest of these bonds. . . .$ 283,418.22 

Annual maturing principal of these bonds 120,000.00 

Available for bond interest $ 163,418.22 

Average annual bond interest charge 37,800.00 

The net earnings, therefore, after providing for ten per 
cent of the entire amount of the principal, were sufficient 
to pay the average annual bond interest nearly four and a 
half times over. 

The year 1910 was a year of extreme depression in the 
lumber industry. The Company's output was less than 50 
per cent of the present normal capacity of its plants. The 
new mill at lone, representing an expenditure of over $750,- 
000, was only recently put in operation and contributed only 
a nominal amount to the Company's earnings. Under nor- 
mal conditions the Company's output in finished lumber 
will be 100,000,000 feet per annum, and its net earnings 



BOND CIRCULARS 359 

applicable to the protection of principal and interest of 
these bonds will be in excess of $600,000 a year. 

SINKING FUND. 

The mortgage securing these bonds provides that on or 
before the 15th day of each month beginning with the 
month of March, 1911, there shall be deposited with the 
Trustee a sinking fund equivalent to $3 per thousand feet 
on all timber cut and removed from the Company's prop- 
erty during the preceding calendar month. This sinking 
fund shall be applied to the payment of the semi-annual 
instalments of the principal of these bonds as they mature, 
and any surplus remaining in the sinking fund at the end 
of any six months period may, at the Company's option, 
be utilized in one of the three following ways: 

First: It may remain in the sinking fund. 

Second: It may be applied in redeeming the bonds in 
the reverse of their numerical order at 105 and interest. 

Third: It may be used in the purchase of additional 
timber and timber lands, subject to the approval of Pea- 
body, Houghteling & Company. 

This sinking fund is sufficient to pay off the entire 
principal of these bonds from the exhaustion of less than 
one-half of the Company's standing timber. 

DESCRIPTION OF SECURITY. 

The Panhandle Lumber Company was incorporated 
in 1906 under the laws of the State of Idaho for the pur- 
pose of doing a general lumber business. The Company 
immediately began to purchase judiciously at low cost, and 
to assemble for its future needs, important blocks of stand- 
ing timber in the territory of the Pend Oreille River valley, 
and it has now in complete operation two of the most 
modern and efficient mills in this country. 

TIMBER. — The Company now owns in fee simple 89,- 
294.83 acres of land and 943,978,490 feet of merchantable 
standing timber in the Counties of Kootenai and Bonner in 
the State of Idaho, and in the Counties of Spokane and 
Stevens in the State of Washington. These timber prop- 
erties comprise: 216,528,256 feet of white pine, 277,180,652 
feet of yellow pine, 450,269,582 feet of mixed timber, prin- 
cipally cedar, spruce, larch and fir. In addition to this 
timber, these lands contain 465,668 cedar poles of mer- 
chantable size. These timber properties are well located 
with respect to the Company's mills, being available both 
by rail and water at low operating and transportation 
cost. 

MILLS. — The Company owns and operates two of the 
largest and most modern mills in the west, located re- 



360 TIMBER BONDS 

spectively at Spirit Lake, Idaho, and at lone, Washington. 
The Spirit Lake mill, which was completed in 1908, con- 
tains two double cutting 9 foot band saws, together with 
all accessory equipment. The plant includes lath mill, 
planing mill, dry kilns and complete manufacturing and 
shipping facilities for handling an annual output of over 
50,000,000 feet of finished lumber and lumber products. 
The Company's mill at lone was completed in 1910 and is 
an exact duplicate of the Spirit Lake mill, except that it 
is electrically driven. The electric plant of the lone mill 
uses sawdust and refuse for fuel and does a profitable and 
steadily increasing business in general power and lighting 
in its vicinity. The aggregate normal capacity of these 
two mills is 100,000,000 feet of lumber per annum and the 
maximum capacity over 150,000,000 feet per annum. In 
order to justify so large an investment in plants, the Com- 
pany is pursuing the commendable policy of purchasing 
for current manufacture the standing timber and logs of 
other owners and preserving as far as possible its own 
timber, as well as applying its surplus funds from time 
to time in adding to its timber reserves. The total amount 
of virgin timber within economic reach of the Company's 
mills is in excess of fifteen billion feet. 

TRANSPORTATION FACILITIES. — The Company's 
transportation facilities are probably not equalled, and are 
certainly not excelled by those of any other lumber com- 
pany in the West. The Idaho & Washington Northern 
Railroad, owned largely by the stockholders of the Pan- 
handle Lumber Company, and built and equipped in the 
most substantial manner, runs practically through the cen- 
ter of the Company's timber properties. This line connects 
with the five main transcontinental trunk lines centering 
at and near Spokane and enables the Company to ship 
its product to all markets reached by these transcontinental 
lines at the same rates as if the Company's mills were actu- 
ally located on these trunk lines. 

MARKET. — The lower grades of the Company's product 
are marketed in the local territory immediately tributary 
to the mills, and as far east as the Mississippi River, and 
as far south as Denver, Colorado, including the very profit- 
able and growing market of the Canadian prairie provinces 
of Saskatchewan and Manitoba, into which section the Com- 
pany shipped last year over 5,000,000 feet of lumber. The 
western pine shop lumber is marketed largely in Wis- 
consin and Iowa, being shipped to the sash and door mills 
in these states. The better grades of boards are largely 
used in the Chicago market, where they command an excel- 



BOND CIRCULARS 361 

lent price. The white pine product is sold principally in 
New York, Pittsburg, Cleveland and Chicago. 

QUALITY OF PRODUCT.— The percentage of high 
grade lumber in the Company's product is unusually high. 
Its western pine timber produces an average of from 50 
to 60 per cent No. 3 shop or better. Its white pine runs 
about 70 per cent No. 2 common, or better. The percentage 
of low grade product in both classes of pine is extremely 
small, being only about 5 per cent No. 4 boards as against 
about 40 per cent in the Minnesota mills. 

EARNINGS. — During the year 1910 the Company sold 
from its Spirit Lake plant, 41,995,799 feet of lumber, and 
from its lone plant 7,379,455 feet, making a total of 49,375,- 
254 feet and its net earnings applicable to the payment of 
principal and interest of these bonds were $283,418.22, 
equivalent to $5.75 per thousand feet of lumber sold. In 
considering these figures for the year 1910 it is proper to 
call attention to the following facts: 

1st: The Company received practically no benefit from 
its new mill at lone recently completed and representing 
a cash investment of over $750,000. 

2nd: The business of the year represents less than 50 
per cent of the Company's present normal capacity. 

3rd: The year was one of extreme depression in the 
lumber industry. 

In view of these facts the showing is an unusually 
creditable one and proves beyond question the ability of 
this Company to protect the principal and interest of its 
bonds under the most adverse conditions. The Company 
now has manufacturing and shipping facilities for an out- 
put of 100,000,000 feet of lumber per annum, and with the 
return of normal conditions in the lumber business, it 
may be conservatively estimated that its margin of profit 
per thousand feet will be increased at least 50 per cent 
over the figures of last year. 

FINANCIAL CONDITION.— After receiving the pro- 
ceeds of these bonds, which have been issued for the pur- 
pose of retiring its floating indebtedness, the Company's 
condition will be as follows as of January 1st, 1911: 

ASSETS. 

Land and standing timber $1,697,856.32 

Farm lands and city real estate. . 66,699.25 

Plants and equipment 1,544,240.45 

Logs, lumber and supplies 680,240.96 

Cash, accounts and bills receivable. 333,442.14 

Total assets $4,322,479.12 



362 TIMBER BONDS 

LIABILITIES. 

Capital stock outstanding $2,892,200.00 

Surplus earnings 188,288.79 

First mortgage bonds 1,200,000.00 

Accounts payable, not yet due.... 41,990.33 

Total liabilities $4,322,479.12 

From the above statement it is evident that the Com- 
pany has a net working capital of $971,692.77, and that 
it has no liabilities except this issue of bonds and current 
accounts not yet due of $41,990.33. The above balance 
sheet shows the Company's assets at their actual cash cost 
and does not reflect the large actual increase in the value 
of its lands and standing timber, the true value of which 
is shown under the heading "Valuation of Security" on 
the front page of this circular. 

FIRE RISK. — A careful investigation of this subject 
develops the fact that forest fires do not destroy, but only 
kill timber of this character and where killed timber is 
promptly cut and manufactured 100% of its value is recov- 
ered. In the case of the Panhandle Lumber Copmany, the 
proximity of its timber to its mills and its enormous manu- 
facturing capacity enables it to recover any fire-killed tim- 
ber promptly and without any loss whatever. As a mat- 
ter of actual experience, it is interesting to note that by 
reason of the clearing of the underbrush by forest fires, the 
actual logging cost to the Company of fire-killed timber is 
shown to be from one to two dollars per thousand feet 
less than the normal operation of unburned forest, while the 
market value of the product is not in any way impaired. 

The Panhandle Lumber Company belongs to an asso- 
ciation of timber owners in this territory, formed for the 
mutual preservation of their forests from fire. This asso- 
ciation maintains an efficient corps of rangers to patrol the 
forests during the summer season when the dry condi- 
tion of the underbrush makes fires possible. The fire 
hazard in the timber of the Panhandle Lupaber Company 
is commercially negligible and cannot, in our opinion, 
endanger the security for these bonds. 

MANAGEMENT. — The management of the Company is 
in efficient and conservative hands. The President, Mr. F. 
A. Blackwell, who has active charge of the Company's af- 
fairs, is a man of the highest integrity, with a long and 
unbroken record of success in the lumber business. The 
manufacturing and selling organizations of the Company 
are complete and efficient. The stockholders of the Com- 
pany are men of substantial means and are well able to 
protect their investment. 



BOND CIRCULARS 363 

We have been familiar with the Panhandle Lumber 
Company ever since its incorporation in 1906. Our expe- 
rience with Mr. Blaekwell and his associates in their rail- 
road and other enterprises extends over a long period of 
years and has been of the most satisfactory character. 
Through our own auditors and experts we have made a 
thorough investigation of the security behind these bonds, 
and titles to the Company's property, and all legal pro- 
cedure, in connection with the issuance of these bonds have 
been approved by Charles L. Heitman, Esquire, of Spirit 
Lake, Idaho, acting in conjunction with our own legal de- 
parment. 

We recommend these bonds as an unusually sound 
and desirable investment for the following reasons: 

First: The timber security alone is conservatively val- 
ued at three times the amount of the bonds. 

Second: The Company's total assets are over five times 
the amount of the bonds. 

Third: The serial payments on account of principal 
will rapidly increase the already large margin of security. 

Fourth: The Company's earnings under the most ad- 
verse conditions show a large margin over both principal 
and interest requirements. 

Fifth: The stockholders have an actual cash invest- 
ment of over $3,000,000 behind the bonds. 

Sixth: The ownership of the Company is in strong 
hands and its management is experienced and successful. 

The bonds will be ready for delivery on or about 
March 1st. 

Price, 101 and accrued interest. 

Delivery will be made at any bank desired, express pre- 
paid. 

Telegraphic orders may be sent at our expense. 

Applications will be filled in the order in which they 
are received. 

PEABODY, HOUGHTELING & CO., 
105 S. La Salle Street, Chicago. 

EXHIBIT NO. 5. 
McCOY & CO., 105 S. La Salle St., Chicago. 
We own and offer, subject to prior sale: $600,000 J. M. 
Thompson Lumber Company (capital and surplus, $1,522,- 
721), Houston and Trinity, Texas, First Mortgage 6 Per 
Cent Gold Bonds. Secured by about 67,000 acres of virgin 
short leaf yellow pine timber lands, owned in fee simple, 
located in Houston, Trinity and Walker Counties, Texas, 
containing over 413,300,000 feet, log scale, of standing mer- 
chantable timber, according to estimates of Lemieux Broth- 



364 TIMBER BONDS 

ers & Company, of New Orleans, La. We appraise the cur- 
rent market value of the property covered by this mort- 
gage at $1,921,260 or more than three times the amount of 
bonds oustanding. 

The mortgage provides that none of the timber standing 
on the lands covered by this issue can be cut or turpen- 
tined during the life of these bonds. 

Central Trust Company of Illinois, Chicago, Trustee. 

Principal and interest guaranteed individually by the 
officers: J. A. Thompson, President; J. N. Lewis Thomp- 
son, 1st Vice-President and General Manager; H. H. 
Thompson, 2d Vice-President; L. N. Thompson, Secretary; 
Alex. Thompson, Treasurer. 

The guarantors of these bonds are lumbermen of many 
years' successful experience in Texas. They control four 
large lumber companies, which own about two billion 
(2,000,000,000) feet of merchantable timber in eastern 
Texas. 

FINANCIAL STATEMENT. 

Capital stock $1,000,000 

Surplus 522,721 

Bonds authorized $800,000 

Held by trustee for pur- 
chase of additional tim- 
ber lands in fee simple, 
at not exceeding $1.50 
per 1,000 feet of standing 
yellow pine timber 200,000 



Outstanding $ 600,000 

Dated July 1, 1908. Principal and semi-annual interest 
(January and July 1st) payable at the office of the Trus- 
tee. Principal may be registered if desired. Denomina- 
tions, $1,000 and $500. 

Bonds mature in series each six months as follows : 
$75,000 due July 1, 1911 
75,000 due January 1, 1912 
75,000 due July 1, 1912 
75,000 due January 1, 1913 
75,000 due July 1, 1913 
75,000 due January 1, 1914 
75,000 due July 1, 1914 
75,000 due January 1, 1915 

Price any maturity, par and interest, yielding 6 per cent. 
This mortgage to the Central Trust Company of Illi- 
nois, as Trustee, is a first lien on about 67,000 acres of un- 



BOND CIRCULARS 365 

cut virgin timber lands, well grouped, located in Houston, 
Trinity and Walker Counties, Texas, heavily timbered with 
short leaf yellow pine. 

The trust deed provides that none of the timber stand- 
ing on the lands covered by this issue can be cut or tur- 
pentined during the life of any of these bonds. 

For further information in regard to the property secur- 
ing these bonds and the personnel of the guarantors, we 
refer you to letter of J. Lewis Thompson, vice-president 
and general manager of the Company, attached hereto. 

TITLES AND MORTGAGE, 

The titles to the lands covered by this mortgage have 
been carefully examined and certified by our counsel, Mr. 
Samuel Adams, of Chicago, under whose legal direction the 
mortgage and bonds were prepared. 

VALUE OF PROPERTY. 
Careful estimates of the timber have been made in de- 
tail by Messrs. Lemieux Brothers & Company, of New Or- 
leans, La., which summarized, are as follows: 

Feet 

Short leaf yellow pine 341,050,006 

Hardwoods, mostly fine oak and 

good gum 72,265,000 

Total 413,315,000 

We appraise the property under this mortgage as fol- 
lows: 

341,050,000 feet pine, at $4.00 per 

1,000 feet $1,364,200 

72,265,000 feet hardwood, at $4.00 

per 1,000 feet 289,060 

67,000 acres at $4.00 per acre, agri- 
cultural value 268,000 

Total $1,921,260 

This mortgage is at the rate of $1.76 per 1,000 feet of 
standing yellow pine timber, and at the rate of only $1.46 
per 1,000 feet of all merchantable timber, not taking into 
account the agricultural value of the lands, owned in fee, 
after the timber is removed. 

Lemieux Brothers & Company, in their report to us, 
state as follows : 

''Our book of estimates on the lands of the J. M. Thomp- 
son Lumber Company, of Houston, Texas, has recently 
been submitted to you; the book shows the amounts of the 



366 TIMBER BONDS 

different kinds of timber on each survey, but the purpose 
of this letter is to give you some further information re- 
garding the general character of the land, gathered during 
our personal examination of it. 

"As will be seen from the map of the property, the 
various surveys constitute an almost solid body, very com- 
pact, which is one of the requisites of an easily logged 
tract of timber land. We think that, taking into account 
in this case all conditions which ordinarily affect logging 
operations, this timber could be logged very cheaply; good 
transportation facilities are afforded by the railroads now 
running through the tract, the International & Great 
Northern and the Trinity & Sabine railroads, and the 
Beaumont & Great Northern. The latter, although but a 
short road used for a logging railroad, could undoubtedly 
be made of much service in developing this property. The 
only part of the tract for which a railroad would have to 
be built is the part lying west of the town of Trinity, and, 
as the land there is very gently rolling, there would be 
very little grading required in the building of the rail- 
road, and no bridges, as there are no streams of any con- 
sequence in this part of the property. The surface of the 
land throughout is gently rolling, just enough to give it 
good drainage, although it is not far from level; the pine 
land is never overflowed, and there would be no trouble 
with high water in conducting logging work. 

We consider the timber good short leaf pine, green and 
thrifty. The estimate, carefully made under the super- 
vision of our Mr. F. A. Lemieux, is accurate and the figures 
speak for themselves. Besides the short leaf pine above 
mentioned, there is a large amount of good hardwood 
timber on the land, which adds a great deal to the value 
of the tract." 

TIMBER VALUES. 

It is now a matter of common knowledge that standing 
timber in the United States is constantly hecoming more 
scarce and rapidly increasing in value. This increase in 
values has been especially marked in the last three years, 
owing to the rapid depletion of the forests to supply the 
constantly increasing demand for lumber. The United 
States Department of Agriculture (Forest Service) reports 
that the timber of this country is being consumed three 
to four times as fast as its natural increase. The con- 
sumption of lumber per capita is more now than ever be- 
fore. The increase in population from 1880 to 1890 was 
52 per cent., but the increase in the lumber cut was 94 
per cent. Yellow pine (the kind of timber standing on the 
lands covered by this mortgage) is still far in the lead 



BOND CIRCULARS 367 

as a lumber producer, supplying about thirty-five per cent, 
of the total cut. During the period from 1899 to 1906 the 
increase in production of yellow pine was about 21 per 
cent., while the increase in value was 77 per cent. With 
an increasing demand for lumber products and a decreas- 
ing supply of the raw material — standing timber — it is 
evident that the value of timber lands will continue to 
increase. There is today no commodity more stable in 
price than well located timber lands, and consequently no 
security upon which money can be loaned with greater 
safety. 

GUARANTY. 

The payment of the bonds and interest thereon is guar- 
anteed unconditionally by the five Thompson Brothers. 

J. A. Thompson, Taylor, Texas, President J. M. Thomp- 
son Lumber Company, owner line of retail lumber yards, 
Director Taylor National Bank. 

J. Lewis Thompson, Houston, Texas, First Vice-Presi- 
dent and General Manager J. M. Thompson Lumber Com- 
pany, President and General Manager Thompson & Tucker 
Lumber Company, President and General Manager Thomp- 
son Brothers Lumber Company, President and General 
Manager Thompson & Ford Lumber Company, Director 
Merchants' National Bank of Houston. 

L. M. Thompson, Houston, Texas, Secretary and Direc- 
tor of all Thompson Companies. 

H. H. Thompson, Willard, Texas, Second Vice-President 
J. M. Thompson Lumber Company, Treasurer Thompson 
& Tucker Lumber Company, Treasurer Thompson Brothers 
Lumber Company, Director Thompson & Ford Lumber 
Company. 

Alex. Thompson, Doucette, Texas, Treasurer J. M. 
Thompson Lumber Company, Second Vice-President 
Thompson & Tucker Lumber Company, Vice-President 
Thompson Brothers Lumber Company, Director Thompson 
& Ford Lumber Company. 

The guarantors own the J. M. Thompson Lumber Com- 
pany (maker of this bond issue) which is a timber hold- 
ing company organized by their father, Mr. J. M. Thomp- 
son, the first manufacturer of lumber in Texas. The prop- 
erty owned by this company and covered by this bond 
issue is one of the finest tracts of short leaf yellow pine 
in the South, and is so regarded by prominent lumbermen. 
They own 75 per cent, of the Thompson & Tucker Lumber 
Company, also organized by their father in 1852, with a 
large lumber manufacturing plant at Willard, Texas, and 
about 41,000 acres, owned in fee simple, of virgin long leaf 
yellow pine timber lands in Trinity and Polk counties. 



368 TIMBER BONDS 

This is the oldest lumber manufacturing company in 
Texas. They own 75 per cent, of the Thompson Brothers 
Lumber Company, which owns about 39000 acres of vir- 
gin long leaf yellow pine timber lands in Tyler County, 
Texas. This company is now completing a large modern 
lumber manufacturing plant at Doucette in place of the 
one recently destroyed by fire. The Thompson & Ford 
Lumber Company is largely owned by the Thompson 
Brothers. J. Lewis Thompson is president and general 
manager. This company operates one of the largest and 
most modern lumber manufacturing plants in Texas, at 
Grayburg, and owns in fee simple and by long time 
leases the standing timber on about 51,000 acres of 
virgin short leaf yellow pine timber lands in Hardin, 
Liberty and Jefferson Counties, Texas. 

It is the opinion of J. Lewis Thqmpson, general man- 
ager of all the Thompson companies, and who has per- 
sonally inspected the timber lands owned by the companies, 
that they will safely cut two billion (2,000,000,000) feet of 
merchantable lumber. 

FIRE HAZARD. 

Timber located in the Southern States has never been 
destroyed by fire. This statement will be verified by lum- 
bermen and other persons familiar with southern timber. 
Any serious damage by fire is impossible because of the 
absence of undergrowth and the height of the trees. This 
is one of the most important facts in connection with this 
security. 

DATES OF PAYMENT. 

These bonds are issued in denominations of $1,000 and 
$500 each, and are due and payable each six months. (See 
first page.) All or any of the bonds may be paid at any 
interest period prior to maturity on sixty days' notice at a 
premium of 3 per cent, and accrued interest. 

All bonds offered by us are subject to sale, change of 
price or withdrawal. We use our best endeavors to care- 
fully examine the details connected with the bonds offered, 
and while we do not guarantee information and statements 
in our letters and circulars regarding securities, they are 
the expressions of our belief, or are statements that have 
been made to us from what we consider reliable sources 
and upon which we have acted. We can furnish the writ- 
ten opinion of our attorneys on each issue. Orders for 
bonds may be telegraphed at our expense. Bonds delivered 
to purchaser, express prepaid, payable in New York or 
Chicago exchange. 



BOND CIRCULARS 369 

J. A. Thompson, Pres. 
J. L. Thompson, Vice-Pres. 
L. N. Thompson, Secy. 
Alex. Thompson, Treas. 

Hoxie H. Thompson, Vice-Pres. and Mgr. 

J. M. THOMPSON LUMBER COMPANY 

Capital and Surplus $1,200,000.00. 

Manufacturers of Yellow Pine Lumber 

Houston, Texas, December 18, 1908. 
Messrs. McCoy & Co., Chicago. 

Gentlemen: — Referring to bond issue of the J. M. 
Thompson Lumber Co., I believe it would be of interest 
to your clients to know something of the history of this 
company and of the personnel of the guarantors — viz., 
J. A., J. L., L. N., H. H., and Alex. Thompson. 

J. M. Thompson, founder of the company, began the 
manufacturing of lumber in 1852, under the firm name of 
The Thompson & Tucker Lumber Company, and celebrated 
his fiftieth birthday in lumber manufacturing by retiring 
from active operation, and in the spring of 1902 disposed of 
his holdings in the Thompson & Tucker Lumber Company, 
the oldest lumber manufacturing concern in Texas, of which 
he was founder and was for fifty years the active head. It 
was after retiring from active business that he considered 
the idea of organizing a timber holding company to be 
composed entirely of members of his immediate family. 
The 70,000 acres of fee land, and more than 400 million 
feet of timber (according to Lemieux Brothers & Com- 
pany's detailed report, which is in your possession) now 
owned by J. M. Thompson Lumber Company, is the out- 
growth of this idea. 

J. M. Thompson died in April of 1907, after having 
spent 55 years in the lumber business in the State of Texas. 
The five guarantors of these bonds, J. A., J. L., L. N., H. H., 
and Alex. Thompson, are all sons of J. M. Thompson, and 
have been connected with the lumber business from their 
youth. 

J. A. Thompson is a resident of Taylor, Texas, and has 
a line of retail yards; is a man of 54 years of age. 

J. L. Thompson is president and general manager of 
Thompson & Tucker Lumber Company and Thompson Bros. 
Lumber Company. 

L. N. Thompson is general sales agent of these two com- 
panies. 

H. H. Thompson is manager of manufacturing plant of 
Thompson & Tucker Lumber Company, at Willard, Texas. 

Alex. Thompson is manager of Thompson Bros. Lum- 
ber Company at Doucette, Texas. We are also interested 



370 TIMBER BONDS 

in the Thompson & Ford Lumber Company at Sour Lake, 
Texas. 

After the completion of the new plant of Thompson 
Bros. Lumber Company, now in course of construction at 
Doucette, Texas, the output of this plant and the plant of 
the Thompson & Tucker Lumber Company at Willard, 
Texas (of which companies we are in active ownership of 
75 per cent of the property), will be 50 million feet annu- 
ally, which two plants are backed up by more than 900 
million feet yellow pine stumpage. 

The writer has personally inspected the entire holdings 
of the J. M. Thompson Lumber Company, and every tract 
has been purchased by me only after a personal inspec- 
tion of the timber. It is my opinion and the opinion of all 
those interested, that this tract of timber, when milled, 
will produce not less than 500 million feet of lumber. Most 
of my business life has been spent in the woods in con- 
nection with our logging operations, and it is my opinion 
that for a short leaf pine proposition this tract of timber 
cannot be excelled as a logging venture. This statement 
can be easily verified from a personal inspection by prac' 
tical loggers. Location of manufacturing plant at Trinity, 
Texas, would make longest haul for any timber 17 miles, 
or an average haul of entire tract of timber not to exceed 
10 miles. The entire tract can be logged, in my opinion, 
at a maximum cost of $3.00 per thousand feet. 

A plant at Trinity would have access to three lines of 
railways: International & Great Northern (part of Gould 
System) ; Missouri, Kansas & Texas Railway Company 
from Trinity to Colmesneil, where the Texas & New Or- 
leans (a Southern Pacific road) would be intersected; the 
Beaumont & Great Northern, which is now completed from 
Trinity to Livingston — with Beaumont as its objective 
point — at Livingston it connects with the Houston East & 
West Texas Railway Company. 

From this it can readily be seen that from an oper- 
ator's viewpoint this is an especially desirable tract of 
timber. It is my opinion that all southern pine timber 
has a commercial value of $4 per M. I think, however, a 
specially favorable tract for logging purposes is worth as 
much more than $4 per M, as it can be logged less than 
$3.50 per M. I figure logs delivered at pond are worth 
$7.50 per M, which figures I believe are generally accepted 
by all practical lumbermen of today. 

This bond issue will represent the entire indebtedness 
of the company. 

I submit below statement of the J. M. Thompson Lum- 
ber Company, Oct. 1, 190&: 



BOND CIRCULARS 371 

ASSETS. 

413 million feet stumpage at $3 per M $1,239,000 

Bills receivable 80,000 

67,907 acres land owned in fee at $3 per acre 203,721 

Total $1,522,721 

LIABILITIES. 

Capital stock $1,000,000 

Surplus 522,721 

Total $1,522,721 

It is the opinion of the writer, from a personal inspec- 
tion, that the lands of the four Thompson companies will 
safely cut two billion (2,000,000,000) feet of merchantable 
timber. 

Assuring you of my willingness to furnish any further 
information that you or your clients might desire in con- 
nection with these properties, I am pleased to remain, 
Yours truly, 

J. L. THOMPSON, 
Vice-Pres. and Gen'l Manager, 

J. M. Thompson Lumber Co. 

McCOY & COMPANY, 

105 So. LaSalle St., 

Chicago. 

EXHIBIT NO. 6. 

CLARK L. POOLE & CO., 

BANKERS. 

Chicago. 

Six per cent. Timber Land Bonds. Secured by 148,200 
acres of virgin redwood, sugar pine and fir timber 
lands, owned in fee simple, and 8,000 acres timber 
leases located in Humboldt and El Dorado Counties, 
California, and Coos, Curry, Douglas and Lincoln 
Counties, Oregon, estimated to contain over seven 
billion eight hundred and fifteen million (7,815,000,000) 
feet of merchantable timber. We appraise the present 
market value of this timber at ten million six hundred 
thousand ($10,600,000) dollars, or more than three and 
one-half times the amount of bond issue. The bonds 
are also a first lien on two lumber manufacturing 



372 TIMBER BONDS 

plants, now in operation, at Marshfield (Coos Bay), 
Oregon, and two large plants and standard gauge 
railroad to be constructed in connection with the tim- 
ber holdings in California. 

We offer, subject to prior sale, at par and interest, $3,000,- 
000 6 per cent. First Mortgage Gold Bonds of the 
C. A. Smith Timber Company, of Marshfield, Ore. 
Principal and interest guaranteed by C. A. Smith, Min- 
neapolis, Minn. 

Dated April 1, 1908. Coupon bonds, $1,000 and $500 each. 
Principal may be registered. Bonds mature: 
$100,000 October 1, 1909 $200,000 October 1, 1913 

100,000 April 1, 1910 200,000 April 1, 1914 

100,000 October 1, 1910 200,000 October 1, 1914 

200,000 April 1, 1911 200,000 April 1, 1915 

200,000 October 1, 1911 200,000 October 1, 1915 

200,000 April 1, 1912 200,000 April 1, 1916 

200,000 October 1, 1912 200,000 October 1, 1916 

200,000 April 1, 1913 300,000 April 1, 1917 

Principal and interest payable at Central Trust Company 
of Illinois, Trustee, Chicago. 

Mr. C. A. Smith, who personally guarantees the payment 
of the principal and interest of these bonds, is one of 
the largest Individual owners of timber lands in the 
United States. Mr. Smith has been for the past twenty 
years, and is at the present time, one of the largest and 
most successful manufacturers of white pine lumber in 
the North, at Minneapolis, Minn. 

THIS MORTGAGE 

To the Central Trust Company of Illinois, as Trustee, 
is a first lien on the following virgin timber lands owned 
in fee simple: 

30,480 acres of redwood timber lands in Humboldt 
County, California. 

45,320 acres of sugar and yellow pine timber lands in 
El Dorado County, California. 

61,760 acres of fir, cedar, spruce and hemlock timber 
lands in Coos, Curry and Douglas Counties, Oregon. 

10,640 acres of fir, cedar, spruce and hemlock timber 
lands in Lincoln County, Oregon. 

8,000 acres sugar and yellow pine timber leases in El 
Dorado County, California. 

Total, 156,200 acres. 

The above tracts of timber lands are all well grouped, 
and compare favorably as to location and accessibility, 
quality and density of growth (which three factors deter- 
mine the value of timber lands) with the best holdings on 



BOND CIRCULARS 373 

the coast. Map showing locations of these lands can be 
seen at our office. 

The bond issue also covers the two saw mill plants 
owned by the company, and located at Marshfleld, Ore., on 
Coos Bay, one of the best harbors on the Pacific Coast. 
(Complete description of mill property will be sent upon 
request.) 

The greater part of the proceeds of the bond issue will 
be used to build two large lumber manufacturing plants 
and standard gauge railroads in connection with the timber 
lands in California referred to above; all of this acquired 
property becomes subject to the lien of these bonds. The 
balance of the proceeds is to be used to retire floating 
indebtedness. 

TIMBER ESTIMATES. 

Careful estimates of the timber have been made in detail 
by expert timber estimators and verified by our own 
cruisers, in charge of Mr. W. E. Straight, a well known 
and competent timber estimator with over twenty years' 
experience. (Detail estimates can be seen at our office. 
Copy of our cruiser's report will be sent on application.) 
These estimates are summarized as follows: 

Acres. Feet. 
Coos, Curry and Douglas Counties, 

Oregon 61,760 3,187,585,000 

Lincoln County, Oregon 10,640 651,335,000 

El Dorado County, California 53,320 1,473,087,000 

Humboldt County, California 30,480 2,503,555,000 

Total 156,200 7,815,562,000 

Average per acre of 50,035 feet, log scale. 
Above total estimates consist of the following: 

Redwood 1,781,170,000 feet 

Sugar pine 663,070,000 feet 

California white pine 439,690,000 feet 

Fir 4,233,177,000 feet 

Cedar 242,890,000 feet 

Spruce 264,580,000 feet 

Hemlock 190,985,000 feet 

Total 7,815,562,000 feet 

These estimates are based upon log scale of uncut mer- 
chantable timber. The timber is of exceptionally good 
quality and the whole situation is favorable from a logging 
and lumbering standpoint. 



374 TIMBER BONDS 

We appraise the market value of the redwood, 
sugar pine and white pine timber — 2,833,- 
930,000 feet— at $2.00 per 1,000 feet $5,767,860.00 

Fir, cedar, spruce and hemlock timber — 4,931,- 

632,000 feet at $1.00 per 1,000 feet 4,931,632.00 



$10,699,492.00 

The value of the standing timber at the above conserva- 
tive appraisal is $10,699,942.00, or more than three and 
one-half times the amount of this bond issue, without tak- 
ing into account the mill properties at Coos Bay, costing 
over $400,000, or the additional railroad and mill prop- 
erties to be constructed with the proceeds of this bond 
issue. 

Our cruisers report that all of the lands in Coos, Curry 
and Douglas Counties, Oregon, are so located that every 
acre can be logged to advantage either by water or by rail- 
road, and it is all tributary to the saw mills on Coos Bay, 
at Marshfield, Oregon. The Coquille River and branches, 
and the Umpqua River and branches intersect the whole 
tract. A large part of the land in Coos County is located 
on tide water bayous. 

The greater part of the land in Humboldt County, Cali- 
fornia, is located upon the bottom lands of Redwood and 
Prairie creeks; a very small percentage is on mountain 
slopes which verge toward these creeks. The Southern 
Pacific Railroad's new coast line from Portland to San 
Francisco, now building from Drain, Oregon, to Marsh- 
field, Oregon, and from there surveyed to Trinidad, Cali- 
fornia, will pass through these lands. 

The main body of the land in El Dorado County, Cali- 
fornia, is located on a plateau and is favorably situated 
for logging operations. 

For further information in regard to this property we 
refer to letter of C. A. Smith, president, attached hereto. 

TITLES AND MORTGAGE. 

The titles to the lands covered by this mortgage have 
been carefully examined and certified by our counsel, Mr. 
Samuel Adams, of Chicago, under whose legal direction 
the mortgage and bonds were prepared. See letter attached 
of ex-Governor John Lind and A. Ueland, attorneys, of 
Minneapolis, Minn., certifying to the titles of a great part 
of these lands. 

GUARANTY. 

The payment of the principal and interest of these bonds 
is unconditionally guaranteed by endorsement on each bond 
by Mr. C. A. Smith, of Minneapolis, Minn. Mr. Smith, 



BOND CIRCULARS 375 

with one exception, is the largest individual owner of tim- 
ber lands in the United States. The lands individually- 
owned by him are located adjacent to and intermingled 
with the lands covered by this bond issue and the timber 
standing thereon will come out over the railroads and be 
manufactured at the mills, now in operation, or to be con- 
structed from the proceeds of this bond issue. Mr. Smith 
has been for the past twenty years, and is at the present 
time, one of the largest and most successful manufactur- 
ers of white pine lumber in the north, at Minneapolis. He 
is president and sole owner, aside from small interests 
owned by the men directly connected with the manage- 
ment, of the following companies: 

C. A. Smith Lumber Company, Minneapolis, Minn. 

C. A. Smith Timber Company, Minneapolis, Minn. 

C. A. Smith Timber Company, Marshfield, Ore. 

C. A. Smith Lumber & Manufacturing Company, Marsh- 
field, Ore. 

Smith-Powers Logging Company, Marshfield, Ore. 

The net worth of the guarantor is many times the 
amount of this bond issue. (See letter of Mr. Smith at- 
tached hereto.) 

REDEMPTION FUND. 

The mortgage, under careful restrictions, requires a 
deposit with the Trustee of $3.00 per thousand feet, log 
scale, for all timber cut and manufactured into lumber, 
based upon the estimates filed with the Trustee. The com- 
pany is required to deposit this redemption fund with the 
Trustee for each forty acres or more before cutting any 
of the timber on the same. This redemption fund applies 
to the payment of the principal only and is on a basis which 
will operate to retire all of the bonds before consuming 
15 per cent, of the standing timber. The company is re- 
quired to carefully account to the Trustee for all timber 
cut, and the provisions of the mortgage covering this point 
are rigidly and carefully drawn. Should the deposits un- 
der the redemption fund exceed the amount of bonds matur- 
ing in any year, the Trustee is required to purchase or call 
for redemption, at a premium of 3 per cent and accrued 
interest, the unmatured bonds to an amount sufficient to 
exhaust the surplus. 

TIMBER VALUES. 
It is now a matter of common knowledge that stand- 
ing timber is becoming more scarce and higher in market 
price. This increase in values has been especially marked 
within the last three years, owing to the rapid depletion 
of the forests to supply the constantly increasing demand 



376 TIMBER BONDS 

for lumber. The following is taken from statistics of the 
Forest Service, United States Department of Agriculture. 
The consumption of lumber per capita is greater now than 
ever before, and the timber of this country is being con- 
sumed three to four times as fast as its natural increase. 
The increase in population from 1880 to 1900 was 52 per 
cent, but the increase in the lumber cut was 94 per cent. 
Yellow pine is still far in the lead as a lumber producer, 
supplying about 33 per cent of the total cut. Second in 
importance is Douglas fir, which furnished 13.2 per cent, 
followed by white pine with 12.2 per cent. 

During the period from 1899 to 1906 — 

The Increase in Production of 

Yellow Pine was 20.7 per cent 

Douglas Fir was 186.2 per cent 

Redwood was 83.2 per cent 

Cedar was 53.7 per cent 

Spruce was 1.3 per cent 

Hemlock was 3.1 per cent 

Western Pine was 46.9 per cent 

Cypress was 69.3 per cent 

The Decrease in Production of 

White Pine was 40.8 per cent 

Poplar was 38.7 per cent 

The Increase in Value of 

Yellow Pine was 77 per cent 

Douglas Fir was 63 per cent 

Redwood was 64 per cent 

Cedar was 66 per cent 

Spruce was 53 per cent 

Hemlock was 54 per cent 

Western Pine was 44 per cent 

Cypress was 64 per cent 

The Increase in Value of 

White Pine Was 45 per cent 

Poplar was 73 per cent 

With an increasing demand for lumber products and a 
decreasing supply of the raw material — standing timber — 
it is evident that the values of timber lands will continue 
to increase. There is today no commodity more stable 
in price than timber lands, and consequently no security 
upon which money can be loaned with greater safety. 

FIRE HAZARD. 
It is well known, generally, that a redwood forest has 
never been destroyed by fire. There is no fire hazard what- 



BOND CIRCULARS 377 

ever in redwood timber. The lands of the C. A. Smith 
Timber Company, in Oregon, are located adjacent to the 
Pacific Ocean in what is known as the fog belt. During 
the greater part of the year the lands in this belt are 
subject to heavy rains and dense fogs, which to a large 
extent eliminates the fire hazard. These lands differ en- 
tirely in this respect from the timber lands located on the 
east side of the mountain range. 

In regard to the sugar and California white pine, we 
quote from a bulletin issued by the Forest Service: "The 
power of mature sugar pine to resist fire is sometimes 
under-rated, for in this respect it far surpasses eastern 
white pine and compares favorably with most of its asso- 
ciates. Mature trees are very rarely killed by fire, unless 
it should get into the crown, and although sugar pine has 
a much thinner bark than either yellow pine or Douglas 
spruce, it ranks well up in the list of fire resistance, the 
trees usually continuing to flourish without apparent per- 
manent injury long after the butt has been badly burned." 
The danger from fire has been greatly lessened also by the 
great care exercised by the lumbermen generally to protect 
their timber holdings. The C. A. Smith Timber Company 
and other large holders of timber lands on the coast have 
organized fire patrol systems which co-operate with the fire 
patrol system of the Government in the Forest Reserves to 
guard against any possibility of fire. There are no indi- 
cations of a destructive fire ever having gone through the 
forests covered by this bond issue. Further particulars on 
this subject will be sent upon request. 

DATES OF PAYMENT. 

The bonds are issued in denominations of $1,000 and 
$500 each, and are due and payable each six months. (See 
first page.) All or any of the bonds may be paid at any in- 
terest period prior to maturity on sixty days' notice at a 
premium of 3 per cent and accrued interest. 



Prices of bonds for long or short time, par and accrued 
interest, yielding six per cent. 



The above statements are based on information and data 
believed by us to be trustworthy and reliable, and while 
not guaranteed by us, have been accepted and acted upon by 
us in the purchase and appraisal of the bonds and the 
property securing the same. 



378 TIMBER BONDS 

C. A. SMITH TIMBER COMPANY, 
411 Andrus Building. 

C. A. Smith, President. 

Minneapolis, Minn., Feb. 28, 1908. 
Messrs. Clark L. Poole & Co., 

First National Bank Bldg., Chicago, 111. 
Gentlemen : 

Complying with your request for general information 
regarding the C. A. Smith Timber Company and the C. A. 
Smith Lumber & Manufacturing Company, of Marshfield, 
Oregon, as well as myself, I am pleased to submit the fol- 
lowing: 

The C. A. Smith Timber Company is a corporation in- 
corporated under the laws of the State of Oregon for three 
and one-half million dollars, fully paid up. Its general 
office is at Marshfield, Oregon. The officers of the company 
are: 

C. A. Smith, President, Minneapolis, Minn. 

J. E. Oren, Vice-President, Marshfield, Oregon. 

C. L. Trabert, Secretary, Minneapolis, Minn. 

A. H. Powers, Treasurer, Marshfield, Oregon. 

This company owns the lands covered by the bond issue 
of $3,000,000, constituting about 

30,480 acres in Humboldt County, California. 
45,320 acres in El Dorado County, California. 
61,760 acres in Coos, Douglas and Curry Counties, 

Oregon. 
10,640 acres in Lincoln County, Oregon. 
8,000 acres Sugar and Yellow Pine Timber leases 

in El Dorado County, California. 



Total, 156,200 acres. 

The timber on these lands has been thoroughly and care- 
fully looked over and estimated by men in our employ, most 
of whom have been in our employ in Minnesota for a long 
term of years, and according to such estimates they contain 
approximately 

1,800,000,000 feet of Redwood. 
1,100,000,000 feet of Sugar and White Pine. 
5,100,000,000 feet of Fir, Spruce and other kinds of 
Timber. 



Total, 8,000,000,000 feet. 

According to the best judgment and belief of the esti- 
mators as per their certificates attached to said estimates 
filed with you and the Trustees, said timber will cut twenty 



BOND CIRCULARS 379 

to twenty-five per cent more than such estimates. From 
re-estimates which we have had made during the last year 
and from our experience in cutting timber in the vicinity 
and from the judgment of other people thoroughly experi- 
enced in cutting these different classes of timber, I am 
satisfied that it will cut even considerably more. 

As to the present value of this timber, it is very diffi- 
cult to state. I believe, however, that the redwood, sugar 
and white pine could readily be sold on a basis of more 
than $2.00 per thousand feet, and the fir, spruce and other 
timber on a basis of more than $1.00 per thousand feet. 
This would mean, approximately, based on the above esti- 
mates : 

1,800,000,000 feet of Redwood, at $2.00 per thou- 
sand feet $ 3,600,000 

1,100,000,000 feet of Sugar and White Pine, at 

$2.00 per thousand feet 2,200,000 

5,100,000,000 feet of Fir, Spruce and other tim- 
ber, at $1.00 per thousand feet. 5,100,000 

Or a total of $10,900,000 

This price I consider most exceedingly conservative 
and do believe that these lands and timber could be sold 
even now at considerably higher prices than above stated, 
but I would not accept twice said amount. 

As an indication of the values of redwood, it might be 
stated that lands in the same territory where these lands 
are located and intermingled with these lands, are held at 
from $100 to $200 per acre, making an average of, say, 
about $3.00 per thousand feet of timber. Lands inter- 
mingled with the sugar and white pine lands are held at 
from $50.00 to $100.00 per acre, making an average of, 
say, about $4.00 per thousand feet of timber. A tract of 
two sections of fir and spruce located in Coos County and 
in the same territory where these lands are located, but, 
however, somewhat more convenient, were sold this winter 
on a basis of $2.60 per thousand feet. 

A contract has been entered into between the C. A. 
Smith Timber Company and the C. A. Smith Lumber & 
Manufacturing Company, extending over a period of thirty 
years, wherein the C. A. Smith Lumber & Manufacturing 
Company agrees to cut of the timber covered by the bond 
issue at least fifty million feet a year and pay to the C. A. 
Smith Timber Company on a basis of $5.50 per thousand 
for Port Orford Cedar and $2.75 per thousand for spruce, 
fir and other timber during this year, with an advance of 
fifty cents and twenty-five cents per thousand respectively 



380 TIMBER BONDS 

each year. I believe that for a long term of years this 
represents a fair, conservative value and as equitable a 
deal for both parties as can be made at present. 

In a new country, where lumbering operations are just 
beginning or are being carried on on a small scale, it is 
difficult to fix actual values of timber. It might be proper 
for me to state that in the years 1890 to 1893, I purchased 
in the State of Minnesota considerably over one hundred 
thousand acres of timber lands at a cost averaging less 
than $1.00 per thousand feet for the timber. The most 
convenient and best of this timber is now cut, but the 
balance, averaging poorer in quality, more remote and 
consequently much more expensive to cut and bring to 
the mills, is today, in my judgment, well worth more than 
$12.00 per thousand feet. 

As the timber resources of the country are being de- 
pleted very rapidly, much more rapidly than in years past, 
I believe that the increase in values in the timbered dis- 
tricts on the Pacific Coast, where operations are just now 
beginning to be carried on, will be more rapid than in the 
last fifteen years in the State of Minnesota. 

A very peculiar feature in regard to redwood timber, 
and which should appeal to investors, and especially to 
those who are not familiar with timber generally, is that 
it is practically indesructible. A redwood tree cannot be 
killed by fire. If it is blown down or severed from the 
stump and lies on the ground for generations, it can still 
be cut into lumber practically as good as that from the 
standing tree. 

The sugar and white pine is very similiar to the white 
pine of Michigan, Wisconsin and Minnesota, except that it 
grows much larger and consequently will cut out several 
times more of the higher grades of lumber than the timber 
in these states. As the white pine in these white pine 
states is being cut out very rapidly and the sugar and white 
pine of the Sierra Mountains, in California (which, by the 
way, is quite limited), is the only timber of that class, it 
can readily be seen that this timber must enhance in value 
very rapidly. 

Regarding the C. A. Smith Lumber and Manufacturing 
Company, permit me to state that this company was or- 
ganized with $750,000 capital, all paid in, to be purely a 
manufacturing and mercantile company. A small mill, 
which is covered by the bond issue, was purchased about 
a year ago and has been in full operation, manufacturing 
from two to two and one-half million feet per month. The 
erection of a new mill and a complete lumber manufactur- 
ing plant was begun about ten months ago, and is now 



BOND CIRCULARS 381 

completed at a cost of upwards of $400,000. This plant 
is also covered by the bond issue. In building this plant 
it has been done with a great deal of study and care to 
make it as complete and economical in every way possible 
as time and money could accomplish. In connection with 
this plant a distributing yard is being put in on Suisan 
Bay, near San Francisco. A steamer has been built at a 
cost of $300,000 by this company, with a carrying capacity 
of two and one-quarter million feet, the intention being to 
use this exclusively for the carrying of the product from 
this plant to the distributing yard. This company also 
owns two-thirds interest in the Smith-Powers Logging Com- 
pany, which is incorporated with a paid-up capital of 
$150,000, for the exclusive purpose of logging the timber 
covered by the contract between the C. A. Smith Timber 
Company and the C. A. Smith Lumber & Manufacturing 
Company, and deliver such logs to the mills of the Lumber 
& Manufacturing Company. I firmly believe that the C. A. 
Smith Lumber & Manufacturing Company will be able to 
deliver the lumber at the distributing yard, paying all ex- 
penses for transportation, manufacturing, logging and for 
the timber as per above agreement, at a net cost of less 
than $8.00 per thousand feet. At the very lowest price 
which, as I understand, has ever prevailed in California 
for fir and spruce, this lumber should average not less 
than $12.00 per thousand feet, and, at a fair average price, 
from $15.00 to $18.00 per thousand feet. 

As the payment of the bonds and interest are guar- 
anteed by the writer, permit me to state that, with the 
exception of a small amount owned by the men directly con- 
nected with the management of the C. A. Smith Lumber & 
Manufacturing Company, I am the sole owner, as I am also 
of the C. A. Smith Timber Company. I also own other 
large tracts of timber in the States of Oregon and Califor- 
nia, which are not covered by the bond issue, but located 
largely in the same territories. I am also the principal 
owner of the C. A. Smith Lumber Company and the C. A. 
Smith Timber Company, of Minneapolis, two very success- 
ful companies, and have interests in other manufacturing 
and mercantile companies, banks, etc. The proceeds of the 
bonds will be used exclusively for the payment of the float- 
ing debts as far as may be necessary, and principally for 
the building of two other lumbering plants with necessary 
railroads for the manufacturing of the timber covered by 
the bond issue. This bond issue will also be a first lien on 
the new lumbering plants and railroads above referred to. 
Yours truly, 
(Signed) C. A. SMITH. 



382 TIMBER BONDS 

Law Office of John Lind and A. Ueland, 401 New York 
Life Building, Minneapolis. 

May 5, 1908. 
Clark L. Poole & Co., 

Bankers, 

Chicago, 111. 
Gentlemen : 

In answer to your favor of May 3rd, permit us to state 
that we have no hesitancy in recommending the bonds is- 
sued by the C. A. Smith Timber Company to our friends 
and clients for investment. Some years ago we examined 
the titles to nearly all of the lands in the State of Califor- 
nia, and to some of those in the State of Oregon covered by 
the trust deed to secure these bonds. The titles examined 
we found good. We are also familiar with the character 
and value of the timber on these lands, and we regard the 
estimates and valuations contained in your prospectus as 
well warranted and conservative. We believe the security 
absolutely good, and we also regard Mr. C. A. Smith's per- 
sonal guaranty of the bonds sufficient in itself to insure 
their prompt payment when due. Yours truly, 

(Signed) JOHN LIND and A. UELAND. 

CLARK L. POOLE & CO., 

Bankers, Timber Bonds, 

Long Distance Telephone, Central 4844. First National 

Bank Bldg., Chicago. 

EXHIBIT NO. 7. 
No. 304. 

OTIS & HOUGH, INVESTMENT BANKERS, 
Cleveland, Ohio. 

We own and offer subject to sale or change, in price: $425,- 
000 First Mortgage 6 Per Cent Serial Gold Bonds of 

AMERICAN LUMBER COMPANY. 



Detroit Trust Company, Detroit, Michigan, Trustee. 



DESCRIPTION OF BONDS. 
Dated September 1st, 1909. Denominations $500 and $1,000. 
Principal and semi-annual interest (January and July 
1st) payable at the Office of the Detroit Trust Company, 



BOND CIRCULARS 383 

Trustee, Detroit, Michigan. Bonds are redeemable at 
any bond paying period, at 103 and interest, after 
forty-five days' published notice. The Company is com- 
pelled to pay into the Sinking Fund $2.00 per thou- 
sand feet of lumber cut. This payment is made quar- 
terly. Bonds may be registered as to principal. 
Maturities : 
$10,000 Jan. 1, 1911 35,000 Jan. 1, 1915 45,000 Jan. 1, 1919 
10,000 Jan. 1, 1912 43,000 Jan. 1, 1916 45,000 Jan. 1, 1920 
25,000 Jan. 1, 1913 42,000 Jan. 1, 1917 50,000 Jan. 1, 1921 
30,000 Jan. 1, 1914 40,000 Jan. 1, 1918 50,000 Jan. 1, 1922 
Price — 101 and Interest. 

CAPITALIZATION. 

The Company is organized under the laws of the State of 
New Jersey, and capitalized as follows: 
Capital Stock authorized and issued. .8,000,000 
Bonds authorized and issued 650,000 

LEGALITY. 

The legality of the mortgage securing this issue of 
bonds has been approved by Messrs. Goulder, Holding & 
Masten, of Cleveland, Ohio. It is a first lien on all of the 
property now owned or hereafter acquired by the Company. 



PROPERTY. 

The property of the Company consists of over 288,783 
acres of land, timbered with white pine, situated in the 
counties of McKinley and Valencia, New Mexico, and 115 
acres of real estate, near Albuquerque, upon which are 
erected the mills, factories, etc. The foregoing lands are 
owned in fee. The Company also owns thirty miles of 
standard gauge railroad, with ample car and motive power 
for its operation; also all additional logging equipment 
necessary for the prosecution of its business. 

The resources of the Company, as per their financial 
statement of September 30th, 1909, were as follows: 

Timber lands, real estate, construction and 

equipment $8,516,842.86 

Bills and accounts receivable, cash and prepaid 

accounts 166,276.05 

Inventory of lumber, material and supplies, etc. 394,206.54 

Total $9,077,325.45 



384 TIMBER BONDS 

The proceeds of this issue of bonds has canceled all of 
the liabilities of the Company, other than its capital 
shares, and this issue and the Company will have on hand 
a working capital in cash of about $100,000, in addition to 
its accounts receivable and supplies on hand. 

The Company earned for the year ending October 31st, 
1909, $100,492.35, including all interest charges, which is 
equivalent to about three and one-half times the interest 
on its bond issue. 

The estimated amount of timber on the Company's prop- 
erty is 1,400,000,000 feet of merchantable pine. At Albu- 
querque, New Mexico, the Company has one of the finest 
lumber manufacturing plants in the country. In addition 
to a saw mill of 50,000,000 feet per annum capacity, it has 
a lath and bi-products mill, box factory and door factory, 
and carries on hand about 20,000,000 feet of lumber of all 
grades. The land owned by the Company is equivalent to 
about thirteen townships and is said to be the largest pri- 
vate holding of white pine in the United States. 

In order to appreciate the magnitude of this property, 
we may state that the Company is compelled to carry up- 
wards of $800,000 of insurance on its mills and manufac- 
tured products. 

Speaking of the timber land, our expert who made the 
investigation for us, reports that there is no danger of fire, 
because the woods are substantially free from underbush 
and rubbish. 

Concerning the logging, he has to say: "The land 
lays nicely for logging and the railroad can be built cheap- 
ly, and the logging to the railroad can be done very rea- 
sonably." 

In addition to the timber owned in fee, the Company 
has contracted for approximately 500,000,000 feet (B. M.), 
and in addition to this, there is an amount of timber equal 
to or greater than the before mentioned amount of timber 
contracted, for which this Company is the logical market. 
The supply of timber in sight will afford this Company 
material for operation for the next thirty-five to fifty 
years. 

MARKET. 

The Company enjoys a very wide market for its prod- 
ucts. The great lumber-using States of Kansas, Missouri, 
Iowa, Colorado, Oklahoma and Texas are within easy ship- 
ping distance, and for its high grade of products, it com- 
mands a large export trade, via Galveston. A large quan- 
tity of lumber is also sold in old Mexico and some on the 
Pacific Coast. 



BOND CIRCULARS 385 

TITLES. 

The titles to the Company's property, in so far as the 
timber lands are concerned, are just two transfers from the 
Federal Government, and all their titles are good. 

MANAGEMENT. 

The officers and directors of the Company are as fol- 
lows: 

Dr. W. H. Sawyer, Hillsdale, Mich., Vice-President. 
Charles P. Wade, Albuquerque, N. M., General Manager. 
Wm. M. Reynolds, Cleveland, Ohio, Secretary. 

DIRECTORS. 

C. A. Black, Detroit, Mich. H. D. Goulders, Cleveland, O. 
J. M. Mulkey, Detroit, Mich. Frank Billings, Cleveland, O. 
George Peck, Detroit, Mich. P. L. Webb, Warren, O. 
F. M. Stewart, Hillsdale, Laurence DeGolyer, Chicago, 

Mich. 111. 

A. F. Freeman, Ann Arbor, A. R. Fay, Chicago, 111. 

Mich. H. M. Picking, East Orange, 

J. H. Wade, Ann Arbor, Mich. N. J. 
C. H. Winchester, Elkhart, N. J. Haywood, New York 

Ind. City. 

C. A. Otis, Cleveland, O. 

These men are all experienced business men, and a 
number of them have had large experience in the opera- 
tion of timber properties. 

INVESTIGATION. 

All the conditions calculated to affect the value of 
these securities have been examined into by our Mr. C. 
A. Otis, and we have had expert advice of Mr. George E. 
Breece, President of the West Virginia Timber Company, 
Charleston, W. Va. They unhesitatingly recommend these 
bonds. 

The Company, in the acquisition of the propertly, had 
the advice of Mr. Martin McDermott, formerly of Luding- 
ton, Michigan, now of Ashland, Wisconsin, who is connect- 
ed with the Edward Hines Lumber Company. 

RECAPITULATION. 

We wish to direct your particular attention to the fol- 
lowing strong points in connection with this issue: 



386 TIMBER BONDS 

1. The bond issue is less than one-tenth of the esti- 
mated value of the property. 

2. The bond issue is on a stumpage basis of less than 
50c per thousand. 

3. The quick assets of the Company amount to about 
the bonded debt. 

4. The insurance in force is more than the bonded 
debt. 

5. The sinking fund is sufficient to pay the entire bond 
issue more than four times over. 

6. The favorable interest return. 



Orders may be telegraphed at our expense, 

Bonds will be shipped to any Bank, express prepaid, 

draft payable in New York or Cleveland Exchange. 

Statements of fact are statements of the Company and 

believed by us to be true. We recommend these bonds as 

a safe and conservative investment. 



OTIS & HOUGH, 

Investment Bankers, 

Cuyahoga Bldg., Cleveland, 0. 



EXHIBIT NO. 8. 

Circular No. 702— July, 1910. 

PEABODY, HOUGHTELING & CO., 

105 South La Salle Street, Chicago. 

Established 1865. ■ 

Cable Address: "Hought," Chicago. Codes Used: Lieber 

and A. B. C. 5th Edition. 
$1,500,000 First Mortgage 6 Per Cent Serial Gold Bonds, is- 
sued by the 

STEARNS COAL & LUMBER COMPANY 
of Stearns, Kentucky. 
Dated July 1st, 1910. Payable in Series as below. Re- 
deemable in the reverse of their Numerical Order on 
interest dates at 103 and Interest. Coupon Bonds of 
$1,000 and $500 each, with Privilege of Registration 



BOND CIRCULARS 387 

as to Principal. Principal and Semi-Annual Interest 
payable at the First National Bank of Chicago and the 
First National Bank of New York. First Trust and 
Savings Bank, Chicago, Trustee. 

DISPOSITION OF BONDS, 

Now Issued: To retire all the indebtedness of the 
Company; to extend railway; to increase saw 
mill and coal mine equipment and to furnish 
working capital $1,500,000 

Reserved: Subject to the written approval of 
Peabody, Houghteling & Co., for future ex- 
tensions and improvements and for the acqui- 
sition of additional timber and other proper- 
ties at not to exceed 50 per cent of the actual 
cash cost of same and for the construction of 
additional railway at not to exceed 75 per 
cent of the actual cash cost of main line fully 





d issue 






, 


uthorize< 


...$2,000,000 




MATURITIES. 






Amount. 


Term. 


Date Maturing. 


$50,000 


1 year 


July 


1, 


1911 


50,000 


iy 2 years 


January 


1, 


1912 


50,000 


2 years 


July 


1, 


1912 


60,000 


2y 2 years 


January 


1, 


1913 


60,000 


3 years 


July 


1, 


1913 


60,000 


Zy 2 years 


January 


1, 


1914 


60,000 


4 years 


July 


1, 


1914 


60,000 


4% years 


January 


1, 


1915 


60,000 


5 years 


July 


1, 


1915 


60,000 


5% years 


January 


1, 


1916 


60,000 


6 years 


July 


1, 


1916 


60,000 


6V 2 years 


January 


1, 


1917 


60,000 


7 years 


July 


1, 


1917 


75,000 


iy 2 years 


January 


1, 


1918 


75,000 


8 years 


July 


1, 


1918 


75,000 


Sy 2 years 


January 


1, 


1919 


75,000 


9 years 


July 


1, 


1919 


75,000 


9% years 


January 


1, 


1920 


75,000 


10 years 


July 


1, 


1920 


75,000 


10y 2 years 


January 


1, 


1921 


75,000 


11 years 


July 


1, 


1921 


75,000 


11% years 


January 


1, 


19-22 


75,000 


12 years 


July 


1, 


1922 



388 TIMBER BONDS 

Bonds reserved for future issue, shall, if issued, mature 
at the rate of $100,000 every six months, beginning Janu- 
ary 1st, 1923. 

These bonds are secured by an absolute first mortgage 
upon all the property now owned and that may hereafter 
be acquired by the Stearns Coal & Lumber Company, and 
also, through deposit with the Trustee of its entire issued 
capital stock and total closed issue of first mortgage bonds, 
upon all the property now and hereafter owned by the 
Kentucky & Tennessee Railway Company. 



GUARANTEE. 

These bonds are guaranteed both as to principal and 
interest by the actual endorsement on each bond of Mr. 
Justus S. Stearns, President of the Stearns Coal & Lumber 
Company, who is in receipt of a large income and whose 
net worth in good realizable assets, entirely outside of his 
interest in this Company, is approximately $2,500,000. 



VALUATION OP SECURITY. 

Based upon the expert reports of Mr. J. P. Brayton as to 
the timber, Mr. J. K. Seifert as to the coal and Messrs. 
Price, Waterhouse & Company as to the Company's ac- 
counts, we value the property securing these bonds as fol- 
lows: 

Land and Timber owned in fee $3,013,197.50 

Coal owned in fee, and leased 3,000,000.00 

Kentucky & Tennessee Railway 640,143.09 

Coal Mines 218,500.16 

Saw Mill and Equipment 387,401.59 

Working Capital 250,000.00 

Total valuation of assets $7,509,242.34 



EARNINGS. 

Based upon our investigation of the Company's opera- 
tions and upon the additions to its saw mill, coal mines 
and railway to be immediately provided from the proceeds 
of these bonds, we estimate the Company's average annual 
net earnings and sinking fund payments as follows: 



BOND CIRCULARS 389 

Lumber Department $100,000.00 

Coal Department 100,000.00 

Kentucky & Tennessee Railway 35,000.00 

Commissary, Rents, etc 40,000.00 



Average annual net earnings applicable to pay- 
ment of Bond Interest $275,000.00 

Average annual Interest Charge on this entire 

issue of bonds 51,937.00 

Sinking Fund from Lumber Opera- 
tions $120,000.00 

Sinking Fund from Coal Operations. 25,000.00 



Average annual sinking fund applicable to pay- 
ment of Bond' Principal 145,000.00 

Average annual serial payment on account of 

Bond Principal 125,000.00 

Combined average annual net earnings and 

sinking fund 420,000.00 

Combined average annual Principal and Inter- 
est requirements 176,937.50 

These figures are based on an average annual output of 
20,000,000 feet of lumber and 500,000 tons of coal. The 
cost of production and selling price in each instance are 
figured on a most conservative basis and the actual annual 
average results during the life of these bonds should ma- 
terially exceed these figures. 

SINKING FUND. 

The mortgage securing these bonds provides that on or 
before the 15th day of each month, beginning with the 
month of August, 1910, there shall be deposited with the 
Trustee a sinking fund equivalent to five cents per ton on 
all coal mined and removed from the Company's property 
during the preceding calendar month, and also that a sink- 
ing fund on all timber cut and removed from the Com- 
pany's property in accordance with the following schedule, 
shall be likewise deposited with the Trustee. 

White Oak $ 8.00 'per thousand feet 

Red Oak 5.00 per thousand feet 

Poplar 15.00 per thousand feet 

Chestnut 2.00 per thousand feet 

Yellow Pine 3.00 per thousand feet 

White Pine 7.00 per thousand feet 



390 TIMBER BONDS 

Hemlock 3.00 per thousand feet 

Hickory 5.00 per thousand feet 

Beech $ 2.00 per thousand feet 

Ash 10.00 per thousand feet 

Timber not specified above 4.00 per thousand feet 

Railroad Ties 10 each 

Telegraph Poles 25 each 

Hemlock Bark 1.00 per cord 

Oak Bark 3.00 per cord 

All Other Forest Products 1.00 per cord 

On the basis of these figures, the removal of the Com- 
pany's timber would produce over $3,000,000, or twice the 
amount of the outstanding bonds, while the exhaustion of 
its coal properties would produce over $15,000,000, or ten 
times the amount of the bonds. 



DESCRIPTION OF SECURITY. 

The security for these bonds consists of — 

(a) 67,981 acres of land owned in fee simble. 

(b) 18,000 acres of timber owned in fee simple. 

(c) 400,000,000 feet of White Pine, Hemlock and Hard- 
wood Timber contained in (a) and (b). 

(d) 22,000 acres of coal rights, including 1,300 acres of 
surface. l 

(e) 300,000,000 tons of coal, contained in (a) and (d). 

(f) Five (5) modern coal mines of a daily capacity of 
2,000 tons. 

(g) Modern saw mill, planing mill, dry kilns and lum- 
bering equipment of a daily capacity of 75,000 feet. 

(h) Town site of Stearns, comprising 509 acres, to- 
gether with 143 houses, commissary, office buildings and 
other structures. 

(i) The Kentucky & Tennessee Railway and complete 
equipment. 

(j) Contracts, rights and other assets. 

The main body of land, comprising 67,981 acres owned 
in fee simple, lies in practically a solid body in Wayne 
County, Kentucky, and in Pickett, Scott and Fentress Coun- 
ties, Tennessee. The property is bounded on the east by 
the Big South Fork of the Cumberland River, and is all 
available to the main line of the Queen & Crescent Rail- 
way. This property, together with the adjoining 18,000 
acres on which the Company owns the timber only, con- 
tains, according to the report of Mr. J. P. Brayton: 



BOND CIRCULARS 391 

TIMBER. 

White Oak 126,725,000 feet 

Red Oak 34,750,000 feet 

Poplar 45,550,000 feet 

Chestnut 41,700,000 feet 

Yellow Pine 21,800,000 feet 

White Pine 56,225,000 feet 

Hemlock 42,225,000 feet 

Hickory 6,610,000 feet 

Beech 15,795,000 feet 

Ash 925,000 feet 

Railroad Ties 277,625 

Telegraph Poles 80,380 

Hemlock Bark 19,790 cords 

Oak Bark 18,600 cords 

Other Forest Products 276,010 cords 

The timber is of excellent quality, is easily available to 
the Company's mills, is practically immune from fire risk 
and will show a marked increase in value during the next 
ten years. 

COAL. 

This entire tract of land is underlaid with some 300,- 
000,000 tons of steam coal of an excellent quality. The 
main vein averages from 48 to 50 inches in thickness, is 
remarkably regular in formation, with sandstone roof and 
floor and ideal working conditions. 

A careful analysis made from samples taken from six 
different locations on the Company's property, shows the 
following average anlysis: 

Commercial Analysis Dry Analysis. 

Moisture 1.616 None 

Ash 9.893 10.050 

Volatile Combustible Matter. 39.538 40.186 

Fixed Carbon 48.953 49.764 

Heat Units 13171.6 13389.5 

Sulphur 3.248 3.298 

Phosphorus None None 

The commercial value of this coal for domestic and 
steam purposes is clearly shown by the number of heat 
units, which is unusually high. 



392 TIMBER BONDS 

OPERATION. 
LUMBER. 

The Company's lumbering equipment consists of a fine 
modern double cutting band and resaw mill located at 
Stearns, together with dry kilns, planing mill, power plant, 
machine shop, lumber sheds and everything necessary for 
the economic manufacture of lumber up to a capacity of 
75,000 feet per day of 10 hours. With its own railroad 
connecting its mills with its main body of timber and 
with an exceedingly favorable freight rate to Cincinnati, 
the principal hardwood market, the company's location is 
a most favorable one for the profitable operation of a 
hardwood lumber business. The Company's earnings from 
this source will naturally vary according to the amount 
and character of the timber manufactured, but should not, 
in any event, be less than $5.00 per thousand feet after 
making proper allowance for depreciation and maintenance 
of plant and logging outfit and after payment has been 
made to sinking fund on account of the stumpage cut and 
removed. 

COAL. 

The Company has now in actual operation five devel- 
oped coal mines with a present capacity of 1,500 tons per 
day. The operation of this coal is of the simplest character, 
consisting entirely of drift mining and obviating the neces- 
sity for shafts, which are expensive to build and expensive 
to maintain. Additional equipment will be immediately 
added to these mines to bring the production up to at least 
2,000 tons per day and this capacity will be steadily in- 
creased as the market for the Company's coal extends. 

"With this additional equipment and increased capacity, 
the cost of putting this coal on cars, according to the re- 
port of Mr. J. K. Seifert, should not exceed 80 cents per ton. 
The Company's entire production is now being promptly 
absorbed at prices netting the Company from $1.10 to $1.35 
per ton f. o. b. cars at mine. The Queen & Crescent Rail- 
road has established at its own cost expensive loading 
works at the town of Stearns for coaling its locomotives 
and this Railroad alone purchases from the Company over 
200,000 tons of coal per annum at $1.35 per ton run of 
mine. The Company also has a well established market 
for its product for domestic use along the entire line of the 
Queen & Crescent, including Chattanooga, Tennessee; Lex- 
ington, Kentucky, and as far north as Toledo, Ohio. One 
prominent coal and iron company is using this coal with 



BOND CIRCULARS 393 

complete success for coking purposes and there is a grow- 
ing demand for the Company's product both for steam, do- 
mestic and coking purposes as far south as Atlanta. Under 
intelligent mangement, there is no doubt that the Company 
will be able to realize a net profit of at least 20 cents per 
ton on its entire production. 

KENTUCKY & TENNESSEE RAILWAY. 
With the completion of the five-mile extension now be- 
ing constructed, the Kentucky & Tennessee Railway will 
have a main line mileage of seventeen miles extending 
from a connection with the Queen & Crescent System at 
the town of Stearns, in a Westerly direction into the main 
body of the Company's timber and coal lands. The prop- 
erty is constructed and equipped in an unusually substan- 
tial manner, a large part of the roadbed being laid with 
80-lb. steel. This Railway is a common carrier, doing a 
general freight and passenger business, receiving its 
share of all through rates, operating under a published tar- 
iff and reporting its operations to the Interstate Commerce 
Commission. The property serves a virgin territory of 
great natural wealth. It is built and equipped to handle 
heavy tonnage and it will be extended from time to time 
as the development of the Company's property and the de- 
mands of other shippers may warrant. 

IN GENERAL. 

The Company owns the entire town site of Stearns, 
comprising some 509 acres, together with 143 houses, be- 
sides boarding houses, office buildings and other struc- 
tures. The Company's houses, which are rented to its 
employes, are of an unusually substantial and comfort- 
able character and indicate the care exercised in housing 
and providing for employes in the most liberal manner. 
The Company's policy in this respect has resulted in an 
adequate supply of labor at fair wages. 

The principal owners of this property are men of large 
means, who have been uniformly successful in their various 
enterprises. Their personal attention to the affairs of this 
Company is an assurance of energetic and conservative 
management. 

Our recommendation of these bonds is based on a thor- 
ough investigation of the security. The Company's timber 
and lumbering operations have been examined by the well 
known timber expert, Mr. J. P. Brayton of Chicago. The 
Company's coal properties have been examined by Mr. J. 
K. Seifert, who is not only a technical coal expert, but a 
practical mine manager of many years' experience. The 



394 TIMBER BONDS 

Company's accounts have been audited by Messrs. Price, 
Waterhouse & Company, and, in addition, the whole enter- 
prise has been checked up and investigated in detail by 
our own staff experts. Titles to the Company's property 
and all legal procedure in connection with the issuance 
of these bonds, have been approved by Mr. E. El. Barthell, 
of Nashville, Tennessee, Messrs. Bundy, Travis & Mer- 
rick, of Grand Rapids, Michigan, and by our own attorneys. 

We recommend these bonds as an unusally sound and 
desirable investment for the following reasons: 

First: The timber security alone is conservatively val- 
ued at twice the amount of the bonds. 

Second: The coal security alone at the nominal valua- 
tion of one cent per ton is equivalent to twice the out- 
standing bonds. 

Third: The property constitutes one of the largest 
and most valuable coal and timber holdings in one owner- 
ship in the entire South. 

Fourth: The serial payments on account of Principal 
will rapidly increase the already large margin of security. 

Fifth: The Company's earnings and sinking fund de- 
posits will show a large margin over both Principal and 
Interest requirements. 

Sixth: The guarantee of Mr. Justice S. Stearns places 
an additional $2,500,000 of good assets and an assured in- 
come of large proportions behind these bonds. 

Seventh: The ownership of the Company is in strong 
and practical hands, assuring conservative and successful 
management. 

The bonds will be ready for delivery on or before Sep- 
tember 1st. 

Price, Par and accrued interest. 

Delivery will be made at any bank desired, express pre- 
paid. 

Telegraphic orders may be sent at our expense. 

Applications will be filled in the order in which they are 
received. 

PEABODY, HOUGHTELING & CO., 
105 S. La Salle Street, Chicago. 

EXHIBIT NO. 9. 

Cable address: "Homcoy," Chicago. Circular No. 349. 

McCOY & COMPANY, 

INVESTMENT BONDS, 

105 South La Salle Street, Chicago. 

$400,000 B. & S. HEINEMANN TIMBER COMPANY 

(Wausau and Heineman, Wis.) 



BOND CIRCULARS 395 

FIRST MORTGAGE 6 PER CENT SERIAL GOLD BONDS. 



Dated June 1, 1909. Maturing in series as below. Callable 
on December 1, 1910, or upon any subsequent interest 
date, at 102 and interest. Semi-annual interest payable 
at the Continental National Bank, Chicago. Coupon 
bonds with privilege of registration as to principal. 
Denominations, $500 and $1,000. Principal payable at 
the office of the Chicago Title and Trust Company, 
Chicago. 



Chicago Title and Trust Company and Wm. C. Niblack, 
Esq., Chicago, Trustees. 



CAPITALIZATION. 

Capital stock $250,000 

Bonds authorized and outstanding 400,000 

These bonds are guaranteed, both as to principal and 
interest, by Mr. B. Heinemann, president of the National 
German-American Bank of Wausau, Wis., and by Mr. S. 
Heineman, president of the National Bank of Merrill, Wis. 

MATURITIES. 
$40,000 due December 1, 1910 $40,000 due December 1, 1915 
40,000 due December 1, 1911 40,000 due December 1, 1916 
40,000 due December 1, 1912 40,000 due December 1, 1917 
40,000 due December 1, 1913 40,000 due December 1, 1918 
40,000 due December 1, 1914 40,000 due December 1, 1919 
Price, any maturity: Par and interest. 

MORTGAGE. 

This issue of bonds is secured by a first and closed 
mortgage to the Chicago Title and Trust Company and Mr. 
Wm. C. Niblack, trustees, upon 29,920 acres of virgin tim- 
ber lands, located in Langlade, Marathon and Lincoln coun- 
ties, Wisconsin, owned in fee and conservatively estimated 
to contain 207,458,000 feet of merchantable timber, besides 
270,515 cords of cord wood; 44,950 cedar telegraph poles 
and 117,700 cedar posts. The mortgage is also a first lien 
upon the two complete saw mill plants of the company, 
one located at Lumberton, four miles from Antigo, Wis., on 
the Chicago & Northwestern Railroad, and the other at 
Heineman, Wis., on the Chicago, Milwaukee & St. Paul 
Railroad. It further provides that these plants shall be 
fully insured and the policies deposited with the trustees 
for the benefit of the bondholders during the life of any of 
the outstanding bonds. 



396 TIMBER BONDS 

AMOUNT AND VALUE OF TIMBER. 

The property has been carefully and conservatively 
cruised by Mr. J. P. Brayton, of Chicago, a copy of whose 
report is on file in our office and may be seen at any time. 
Mr. Brayton summarizes his report and valuation of the 
property as follows: 
J. P. Brayton, Timber Lands, 204 Dearborn Street, Chicago. 

July 28, 1909. 
Messrs. McCoy & Company, 
181 La Salle Street, 

Chicago, Illinois. 
Gentlemen: 

In handing you my detailed report and cruise of the B. 
& S. Heinemann Timber Company lands, I desire to state 
that I found practically all accessible to railroads and 
spurs thereon, entailing very short haulage. Both the 
Chicago, Milwaukee & St. Paul and the Chicago & North- 
western railroads have installed very adequate facilities 
for inexpensive logging of this timber. There is also a 
large proportion of the timber tributary to driving streams 
which run through the properties. 

Nearly all of the timber examined is located on level 
and slightly rolling land, and the property is so grouped 
that logging operations are easily contracted at a nominal 
cost. 

I summarize the value of the property as follows : 
207,458,000 feet of good merchantable timber at 

$4.00 per M $ 829,832 

Two mill plants, with railroad facilities 150,000 

30,000 acres of land in fee, at $5.00 per acre 150,000 

In addition to the above, there are 35,000 cords of 
hemlock bark on the property, which at the 

present market value is worth at least 70,000 

80,595 cords of pulp wood at 50c per cord 40,297 

45,000 cedar poles at 25c per piece 11,250 



$1,251,379 
Besides, cedar posts and cord wood in large quantities. 
In my opinion, the security is ample for a loan or bond 
issue of $400,000. 

Yours very truly, 

(Signed) J. P. BRAYTON. 

SINKING FUND. 
The mortgage, under careful restrictions, requires a de- 
posit in advance with the trustees of $4 for each one thou- 
sand feet of timber to be cut, this deposit to be made on 



BOND CIRCULARS 397 

the basis of the amount of timber found on each forty acres 
as certified to by Mr. J. P. Brayton in his report. 

GUARANTEE. 
The bonds are unconditionally guaranteed, both as to 
principal and interest, by endorsement on each bond by 
Mr. B. Heinemann and Mr. S. Heineman, jointly and sev- 
erally. Their net personal worth, exclusive of any equity 
in the property under this mortgage, is more than twice 
the amount of the entire bond issue. 

LEGALITY. 

The titles to the lands covered by this mortgage have 
been carefully examined and certified to by our counsel, 
Mr. Horace S. Oakley, of Chicago, under whose legal direc- 
tion the trust deed and bonds have been drawn. Mr. Oak- 
ley's opinion is on file in our office, and we shall be glad to 
furnish copies of same on request. 

FIRE HAZARD. 

One of the most frequent and popular arguments used 
by investors against the purchase of timber bonds is that 
of fire hazard, which is not unnatural, as it is popularly 
supposed by many that every year enormous amounts of 
valuable timber are consumed by forest fires. This belief, 
however, is not borne out by actual facts. A careful inves- 
tigation made during the fall of 1908 by the "American 
Lumberman" proved conclusively that standing virgin tim- 
ber is seldom damaged to any extent by forest fires, that 
the fires so currently reported in the public press during 
periods of drought occur almost solely in the undergrowth 
of cut-over lands and in slashings. In substantiation of 
the foregoing we quote the following extracts from the 
"American Lumberman" of September 19, 1908, as follows: 

"It may be stated with confidence that the accounts of 
forest fires given in the daily press are greatly exaggerated 
from the timber owner's standpoint. Every one who has 
built a bonfire with the leaves he has raked from his 
lawn knows what a tremendous smudge a little fire will 
produce, but when several states are covered with smoke, 
as has been the case during the last week, the conclusion 
naturally is that so much smoke must be the result of con- 
siderable fire. * * * It should be remembered that fire 
seldom, if ever, destroys the timber through which it 
passes. * * * Fires thus far have been confined almost 
entirely to cut-over lands and brush lands. * * * Fire 
seldom invades extensively green timber of the sort which 
enters into the calculation of lumbermen. Green timber 



398 TIMBER BONDS 

does not burn readily, and under ordinary circumstances 
the fire will die oqt of itself when it reaches these points 
of resistance. * * * There have been a great many 
fires recently in Wisconsin and Michigan, but they have 
been entirely in underbrush, grass and old choppings." 

In considering the fire risk on the B. & S. Heinemann 
Timber Co.'s property, it should be borne in mind in the 
first place that the timber is almost entirely composed of 
hardwood and therefore not susceptible to fire, and sec- 
ondly that the tracts are interspersed with substantial 
farm holdings which would render it impossible for a dev- 
astating fire to damage any large portion of the timber. 

TIMBER BONDS AS AN INVESTMENT. 

Timber is one of the most valuable natural resources 
of this country. Its value has been largely underesti- 
mated, and in the past years considerable waste has taken 
place. Those who some years ago saw the increasing value 
of timber have amassed immense fortunes by purchasing 
timber lands and holding them until the present time. 
There is probably no commodity which has shown such a 
substantial and steady increase in value as has virgin 
timber. Our experience, covering a number of years and 
based upon investigations of many timber loans, convinces 
us that bonds secured upon carefully selected virgin tim- 
ber, the property of well established and operating cor- 
porations, form a security which is rarely equalled for 
safety. 

In addition to the actual physical security behind the 
present issue of over three times the amount of the bonds, 
Messrs. Heinemann, who personally guarantee payment of 
the bonds and interest, are lumbermen of many years' ex- 
perience, and own and operate additional lumber com- 
panies, which have an excellent record of earnings cover- 
ing a number of years. 

We call special attention to the letters of Mr. B. Heine- 
mann and Mr. S. Heineman, President and Secretary, 
respectively, of the B. & S. Heinemann Timber Company, 
on the last page of this circular. 

Wausau, Wis., July 24, 1909. 
Messrs. McCoy & Company, 105 S. LaSalle Street, Chi- 
cago, 111. 

Gentlemen: — In accordance with your request that I 
give you some information regarding my connection with 
the timber and lumber industries, I would state that I 
have been connected with the timber and timber-land busi- 
ness for the past twenty odd years, and for the past four- 



BOND CIRCULARS 399 

teen or fifteen years have been actively engaged in the 
manufacturing of lumber. 

I am president of the B. Heinemann Lumber Company, 
whose mills are up-to-date, are equipped with modern 
machinery, electric lights and a steam heating plant 
which provides heat for the several buildings. The plant 
is located at Lumberton, Wis., four miles west of Antigo, 
on the Chicago & Northwestern Railroad, and this company 
has always manufactured its products in the most econom- 
ical and advantageous manner. In addition to the lumber 
industry, they are also engaged in the manufacture and 
wholesaling of excelsior. 

This company has at its plant a hotel, several houses 
for its employes, and also conducts a general merchan- 
dise business. 

As to the lands, would say that both the Chicago & 
Northwestern and the Chicago, Milwaukee & St. Paul rail- 
roads run through the entire tract, making all easily 
accessible to the railroads and carrying with it economical 
logging operations. These lands are all located in a well 
settled country, thereby creating an easy market for the 
sale of the lands after the timber is removed. 

As to the management of the B. Heinemann Lumber 
Company, will say that same is managed by my two 
sons, W. B. Heinemann, vic'e-president, and G. B. Heine- 
mann, secretary and treasurer, they giving their entire 
personal attention to this company and reside at the mill. 
Mr. G. B. Heinemann is also vice-president of the B. & S. 
Heinemann Timber Company. 

I am also president of the National German-American 
Bank of Wausau, Wis.; president of the B. Heinemann 
Lumber Company; president of the Cisco Lake Lumber 
Company, both of Wausau, Wis.; vice-president of the 
Wisconsin Box Company, Wausau, Wis.; vice-president of 
the Wausau Land Company, Wausau, Wis.; secretary and 
treasurer of the Land & Loan Company, Merrill, Wis.; 
director of the Great Northern Life Insurance Company, 
Wausau, Wis.; member of the Executive and Finance Com- 
mittee; vice-president of the Langlade Realty Company, 
Wausau, Wis., and my other interests, exclusive of any 
equity which I h?F?e in the B. & S. Heinemann Timber 
Company, give me a net responsibility considerably in 
excess of the bonded indebtedness of the B. & S. Heine- 
mann Timber Company. 

Yours very truly, 
(Signed) B. HEINEMANN, 
President B. & S. Heinemann Timber Co- 



400 TIMBER BONDS 

Merrill, Wis., July 24, 1909, 
Messrs. McCoy & Company, 105 S. LaSalle St., Chicago, 
111. 

Gentlemen: — I am president of the Heineman Lumber 
Company, Heineman, Wis., which business was begun in 
November of 1902, as a co-partnership consisting of my- 
self and H. H. Heineman, the latter having a working 
interest in the business and managing the same under 
my direction. The business was run as a co-partnership 
until the fall of 1908, when it was incorporated under 
its present title. 

The properties of the original co-partnership included 
some 5,000 acres of land together with a small mill and 
store, hotel and a few dwellings, and since that time the 
holdings of the company have been increased many fold 
in its timber and land department and the mill plant has 
been remodeled and its capacity increased nearly three- 
fold. The policy of the co-partnership has been so far 
as practicable to retain its timber holdings, and to that end 
a large part of the production in the early years was ob- 
tained by purchases of logs from settlers and others. 

Since the beginning of its business our company has 
been instrumental in opening the surrounding country, 
and the laying of some fifty miles of track through its 
lands has served the double purpose of making its timber 
holdings accessible and of settling and appreciating the 
value of its cut-over lands. 

I have been actively identified in the lumber business 
and in the land business in various companies since 1886; 
and Mr. H. H. Heineman has been actively engaged in the 
lumber and land business for the past ten years, including 
all branches of lumber business from the logging to the 
sale of the product. I reside at Merrill, Wis., and Mr. 
H. H. Heineman at Heineman, Wis. Mr. H. H. Heine- 
man is treasurer of the B. & S. Heinemann Timber Com- 
pany. 

The Village of Heineman consists of sixty dwellings 
for employees, store buildings, hotels and has an up-to- 
date band saw mill and planing mill. The entire plant is 
equipped with electric lighting, water works and steam 
heating supplied from the saw mill plant; and the plant 
and yard cover approximately 200 acres of ground. 

In addition to the lumber business, conducted at Heine- 
man, Wis., the Heinemann Lumber Company are whole- 
saling the product of several other northern mills. 

Exclusive of any equity which I may have in the B. 
& S. Heinemann Timber Company my net responsibility 



BOND CIRCULARS 



401 



is considerably in excess of the amount of the entire issue 
of bonds of the B. & S. Heinemann Timber Company. 
Yours very truly, 
(Signed) SIG. HEINEMAN, 
Secretary B. & S. Heinemann Timber Co. 
Telegraphic orders may be sent at our expense. 
Bonds will be shipped to any responsible bank, express 
prepaid, payable in Chicago or New York Exchange. 

All statements herein are official or based on informa- 
tion which we regard as reliable, and while we do not 
guarantee them, they are the data upon which we have 
acted in the purchase of these securities. Bonds are 
offered subject to prior sale and advance in price. 
McCOY & COMPANY, 
105 So. LaSalle St., 
Chicago. 

EXHIBIT NO. 10. 

Charles M. Smith & Company, Bonds for Investment, 
First National Bank Building, Chicago. 

This issue of bonds is a legal investment for Michigan 
savings banks and trust funds. 

We own and offer $450,000 closed first mortgage six 
per cent, serial gold bonds issued by The Tennessee 
Timber Co., Prendergast, Tenn., guaranteed by The 
Prendergast Company, Marion, Ohio. 

Dated January 1, 1911. Due serially as shown below. 
Interest coupons payable January and July 1st, at 
First National Bank of Detroit, or First National 
Bank of Chicago. Redeemable on any interest date 
after sixty days' notice at 102 and interest. De- 
nominations, $500 and $1,000. Principal may be 
registered with the Trustee. Bonds mature as fol- 
lows: 

1, 1911 



$20,000 July 
20,000 January 1, 1912 
20,000 July 1, 1912 

20,000 January 1, 1913 
20,000 July 1, 1913 

20,000 January 1, 1914 
20,000 July 1, 1914 

20,000 January 1, 1915 
20,000 July 1, 1915 

20,000 January 1, 1916 
Price par and interest, yielding six per cent. 

SECURITY. 
The mortgage to the Security Trust Company, of 



$25,000 July 

25,000 January 

25,000 July 

25,000 January 

25,000 July 

25,000 January 

25,000 July 

25,000 January 

25,000 July 

25,000 January 



1916 
1917 
1917 
1918 
1918 
1919 
1919 
1920 
1920 
1921 



402 TIMBER BONDS 

Detroit, Michigan, trustee, is a first lien on about 49,000 
acres of virgin timber lands, owned in fee simple, con- 
taining 267,540,280 feet of standing merchantable 
timber, consisting of poplar, white and yellow pine, white 
and red oak, etc., lying in a solid body in Polk County, 
Tennessee. The mortgage also covers a modern double 
band saw mill with a capacity of 25,000,000 feet per 
annum, planing mill, dry kilns, etc., 16^ miles of com- 
pletely equipped standard gauge logging railroad, store 
building and employees' houses, located at Prendergast, 
Tennessee. 

A conservative appraisement of the timber mort- 
gaged, found in detail on the following page, shows it 
worth $1,456,000, — over three times the amount of the 
bonds. The Prendergast Company, of Marion, Ohio, un- 
conditionally guarantees the payment of bonds, both 
principal and interest. It is a corporation with the 
highest credit and has been profitably engaged in the 
lumber business for over 16 years. Marwick, Mitchell 
& Co., chartered accountants, report the combined as- 
sets of the companies issuing and guaranteeing the bonds 
at about $2,500,000, — over five times the amount of the 
bonds, and the net profits for the last five years at $440,- 
900.70. 

RAILWAY, ESTIMATES AND APPRAISALS. 

The company's plant at Prendergast, Tennessee, is 
located on the main line of the Louisville & Nashville 
Railway, affording excellent shipping facilities. 

Lemieux Brothers & Company, the well known pub- 
lic estimators, of New Orleans, Louisiana, estimate the 
quantity of standing merchantable timber at 267,540,280 
feet, log scale, the appraised value of which is as fol- 
lows: 

At per 
Feet 1,000 
Poplar 58,586,000 $12.00 $ 703,032.00 
White pine 35,459,160 6.00 212,754.96 

Yellow pine 14,514,150 3.50 50,799.53 

White oak 12,101,755 6.00 72,610.53 

Red oak 13,855,480 4.00 55,421.92 

Basswood 10,477,550 5.00 52,387.75 

Hemlock 56,465,060 3.00 169,395.18 

Other hardwoods 66,081,125 140,126.15 

$1,456,528.02 

Tanic acid wood 219,487 cords 

Pulp wood 195,100 cords 



BOND CIRCULARS 403 

FINANCIAL STATEMENT OF COMPANIES ISSUING 
AND GUARANTEEING BONDS. 

November 30, 1910, before issuance of bonds. 
ASSETS. 
Cash in banks and on hand. . $ 85,922.17 

Accounts receivable 125,649.25 

Lumber, logs, merchandise 
and other current and 
working assets 199,240.07 

Quick assets $410,811.49 

Stumpage, Polk County, 

Tenn $1,456,000.00 

Saw mill plant, railroad and 
logging equipment, etc., 
in Polk County, Tenn. . . 519,390.57 

Real estate in Marion, Ohio, 
and saw mill plant and 
stumpage in W. Virginia. 65,300.14 

Furniture and fixtures, Ma- 
rion, Ohio 1,500.00 

Fixed assets $2,042,190.71 

Total assets $2,453,002.20 

LIABILITIES. 

Accounts and bills payable $439,778.26 

PURPOSE OF BOND ISSUE. 

The proceeds of the bonds will be used to pay bal- 
ance on timber purchased (included in bills payable ac- 
count), and retire floating indebtedness, leaving the 
bonds as practically the only debt. 

HISTORY AND MANAGEMENT. 
The Tennessee Timber Co. has taken over from The 
Prendergast Company its Polk County, Tennessee, timber 
lands and plant. Its capital stock is owned by The 
Prendergast Company, and the officers and directors of 
both companies are practically the same. The Prender- 
gast Company was organized in 1907 and succeeded to 
the business of the Prendergast Lumber & Coal Com- 
pany, of Marion, Ohio, which had been for over twelve 
years prior to this change in name, profitably engaged in 
the wholesale lumber and coal business at that place. 
The officers are: 



404 TIMBER BONDS 

J. F. Prendergast, President. 

O. S. Rapp, Vice-President. 

W. S. Probst, Secretary and Treasurer. 

The directors are: G. W. King, J. A. Schroeter, F. 
A. Huber, W. E. Scofield, W. G. Harding, C. W. Leffler, 
J. F. Prendergast, O. S. Rapp and W. S. Probst. They 
are leading business men of Marion and officers and 
principal stockholders of such corporations as The 
Marion Steam Shovel Company, Huber Manufacturing 
Co., Marion Water Co., Marion County Telephone Co., 
Marion National Bank, Fahey Banking Co. and City Na- 
tional Bank. 

SINKING FUND. 

The trust deed provides that before any timber is cut 
the Company must pay to the Trustee as a sinking fund 
for the redemption of bonds, $3.00 per thousand feet, 
according to the timber estimates on file with the Trus- 
tee. After removal of timber the land may be released 
by the Trustee on payment of $3.50 per acre into the 
sinking fund. 

The sinking fund is sufficient to retire all the bonds 
before sixty per cent of the timber mortgaged has been 
cut. 

FIRE HAZARD. 

Timber located in the southern states has never been 
destroyed by fire. Absence of undergrowth and height 
of trees render any serious fire damage impossible. 

EXAMINATION. 

Before purchasing this issue we made a thorough 
personal investigation of all of the conditions on which 
the security depends. All titles to the property have 
been carefully examined and approved by competent at- 
torneys, under whose supervision the mortgage was 
drawn and the bonds issued. 

Copies of trust deed, attorney's opinion, detailed 
timber estimates and other data pertinent to the issue 
may be seen at our office. 

All statements herein are official or are based on in- 
formation and data believed by us to be trustworthy and 
reliable, and while not guaranteed, have been accepted 
and acted upon by us in the purchase and appraisal of 
the bonds and the property securing the same. 

Bonds are offered subject to prior sale. 

Bonds will be delivered where desired, express pre- 
paid, with exchange. 

Telegrams may be sent at our expense. 



BOND CIRCULARS 405 



Charles M. Smith & Company, Bankers, First National 
Bank Building, Chicago. Long distance telephone 
Randolph 1946. 

EXHIBIT NO. 11. 

We own and offer at par and interest $500,000 first 
mortgage 6 per cent, serial gold bonds Parsons 
Pulp & Lumber Co. of Parsons, W. Va., and Phila- 
delphia, Pa. 
Principal and interest guaranteed by William Whitmer 

& Sons, Inc., of Philadelphia, Pa. 
Girard Trust Company and Charles J. Rhoads, Esq., 

Philadelphia, Pa., trustees. 
Dated November 1, 1909. Coupon bonds, $1,000 and 
$500 each. Principal may be registered. Bonds 
mature serially each six months. Principal and 
semi-annual interest (May and November) payable 
at Girard Trust Company, Philadelphia; or Central 
Trust Company, Chicago; or Bank of Scotland, Lon- 
don. 
Bonds mature serially each six months from Nov. 1, 
1911, to Nov. 1, 1924. 

FINANCIAL STATEMENT. 
Capital stock and surplus Parsons Pulp & 

Lumber Co $3,610,039.45 

Estimated value of property covered by 

this bond issue 9,324,034.00 

Bonds authorized $3,800,000 

Escrow bonds (can 
be issued only 
under strict pro- 
visions of Trust 
Deed for pur- 
chase of addi- 
t i o n a 1 timber 
lands and im- 
provements) ..$500,000 
Bonds matured, 
paid and can- 
celed 1910 195,000 695,000 

$3,105,000 
Reserved in treasury, Wm. 

Whitmer & Sons, Inc 300,000 

Bonds outstanding, including 

amount now offered $2,805,000.00 



406 TIMBER BONDS 

We have had the books of the Parsons Pulp & Lum- 
ber Company and William Whitmer & Sons, Inc., ex- 
amined by The Audit Company of New York. Copies of 
their report will be sent on request. 

SEVEN YEARS' RECORD OP EARNINGS. 

The net income of the Parsons Pulp & Lumber Com- 
pany for the year 1910 is $616,299.68, or over three and 
one-quarter times the maximum interest charge on this 
entire issue. The annual net earnings for the past 
seven years have averaged over $400,000, or nearly four 
times the average interest charge of the entire issue. 
During the past year the indebtedness per thousand feet 
of timber has been reduced from $1.73 to $1.69, and 
the security correspondingly increased. 

MORTGAGE SECURITY 

The bonds are secured by first mortgage on nearly 
two billion feet of merchantable spruce, poplar and hard- 
wood timber, 55 miles of railroad and modern equip- 
ment, three large saw mills and 50-ton pulp mill, and 
100,400 acres of land. The market value of the above 
properties covered by the mortgage is conservatively 
estimated at $9,324,034, or over three times the amount 
of this bond issue of $3,105,000. 

VALUE OF GUARANTEE. 

These bonds have the unconditional guarantee of 
William Whitmer & Sons, Inc., of Philadelphia, which 
company has been in successful operation in the lumber 
business for about forty years, and is one of the largest 
and best known lumber companies in the East. This 
bond issue represents the entire indebtedness of the 
Parsons Pulp & Lumber Company and William Whitmer 
& Sons, Inc., excepting ordinary current accounts. 

List of maturities offered given on last page. 

MORTGAGE. 
This bond issue is secured by a first mortgage to the 
Girard Trust Company and Charles J. Rhoads, Trustees, 
of Philadelphia, on 100,400 acres, owned in fee simple, 
and 63,000 acres timber deeds, a total of 163,400 acres 
of spruce, yellow poplar, hemlock, oak, chestnut and 
other hardwood timber, located in Pendleton, Poca- 
hontas, Randolph, Tucker and Grant counties, West 
Virginia; Highland, Washington, Russell, Smyth and 



BOND CIRCULARS 407 

Tazewell counties, Virginia, and Swain County, North 
Carolina. 

The bonds are also secured by a first mortgage on 
three modern saw mill plants, pulp mills, 55 miles of 
railroad and equipment and logging equipment, located 
at Dobbins, Lanesville and Horton, West Virginia. 

The Company's large pulp mill at Parsons, W. Va., 
is located near its three saw mills in that state, and is 
profitably manufacturing into sulphite pulp the refuse 
and limbs of trees which are wasted in the usual saw 
mill operation. 

VALUE OF PROPERTY COVERED BY MORTGAGE. 

A conservative appraisal of the 
value of the timber covered by 
this bond issue is $3.50 per 
thousand feet, log, scale, or. .. $6,690,222 

900,000 cords of spruce and hem- 
lock pulp wood tan bark and 
acid wood conservatively es- 
timated at 1,205,500 

Total $7,895,722 

Value of three saw mill plants, pulp and paper 
mill, railroads and logging equipment, also 
covered by this bond issue 1,428,312 

A total value of all property $9,324,034 

or over three times the amount of this bond issue of $3,- 
105,000. This appraisal does not include the value of 
the 100,400 acres of land, owned in fee simple, for 
mineral, grazing and agricultural purposes. 

TIMBER ESTIMATES. 

The timber lands located in West Virginia have been 
estimated by Lemieux Bros. & Company, public es- 
timators, of New Orleans, La. 

The timber lands in Virginia were carefully estimated 
by Mr. R. P. Moore, and the timber lands in North 
Carolina by Mr. John C. Arbogast, who are expert es- 
timators of timber in those sections. These estimates 
have been verified by the well-known and competent 
timber estimator, Mr. W. E. Straight, of Chicago. 

According to the above estimates, this bond issue 
covers 1,911,492,000 feet, log scale, of merchantable 
standing timber, as follows: 



408 TIMBER BONDS 

Spruce 1,350,000,000 

Hemlock 214,050,000 

Oak 94,279,000 

Chestnut 113,233,000 

Yellow poplar, cherry, ash, 

birch and other hardwoods 139,930,000 

Total , . 1,911,492,000 ft. log scale 

PURPOSE OP BOND ISSUE. 

Of the authorized bond issue of $3,800,000, $195,000 
bonds have been retired and $500,000 are held in escrow 
by the Trustee and can be issued only in acquiring addi- 
tional timber and further improving the property of the 
Company, under strict provision of the trust deed. The 
$3,300,000 bonds originally outstanding were issued to 
refund the Company's then outstanding issue of $1,- 
550,000 bonds, to take up the outstanding indebtedness 
against the subsidiary companies taken over from Wil- 
liam Whitmer & Sons, Inc., and to reimburse William 
Whitmer & Sons, Inc., for advances made on account of 
purchase price of properties, and leaves in the treasury 
of William Whitmer & Sons, Inc., $300,000 of bonds. 

In addition to the $300,000 treasury bonds above 
referred to, the report of The Audit Company of New 
York shows that the Parsons Pulp & Lumber Company 
and William Whitmer & Sons, Inc., have on hand quick 
assets amounting to about $1,000,000. 

STATEMENT OF EARNINGS. 
■ 

The earnings of the Parsons Pulp & Lumber Com- 
pany for the year ending December 31* 1910, were as 
follows: 
Gross revenue from sales, (after deducting 

allowances, returns, freight, etc.) $1,774,579.20 

Operating expense (including repairs and 

supplies, insurance, taxes, etc.) 1 ,191,156.19 

Net earnings from operations $ 583,423.01 

Other income 32,876.67 

Total net income $ 616,299.68 

Bond interest and other 

charges $222,061.77 

Sinking fund paid to Trustee 

for retirement of bonds. . . 177,425.67 399,487.44 

Surplus . $ 216,812.24 



BOND CIRCULARS 409 

GUARANTY. 

The payment of the bonds and interest thereon is 
guaranteed unconditionally by a signed endorsement on 
each bond by William Whitmer & Sons, Inc., of Phila- 
delphia, Pa. William Whitmer & Sons, Inc., owns the 
entire capital stock of the Parsons Pulp & Lumber Com- 
pany, and the -officers of the two companies are prac- 
tically identical. 

The Parsons Pulp & Lumber Company was organized 
for the purpose of consolidating into one company the dif- 
ferent subsidiary companies of William Whitmer & Sons, 
Inc., as follows: The Rumbarger Lumber Company, of 
Dobbins, W. Va.; Dry Forks Lumber Company, of Lanes- 
ville, W. Va.; the Condon-Lane Boom & Lumber Com- 
pany, of Horton, W. Va., and the Parsons Pulp & Paper 
Company, of Parsons, W. Va. These companies have 
been in successful operation for many years. 

William Whitmer & Sons, Inc., the guarantors of 
these bonds, is one of the largest and oldest lumber 
manufacturers and dealers in the East. This business 
was established in Sunbury, Pa., about forty years ago 
and was moved to Philadelphia in 1890. They operated 
saw mills in Pennsylvania and for about twenty years 
have carried on large saw mill operations in West Vir- 
ginia. In addition to the large holdings of timber lands 
owned by them by virtue of the ownership of the Par- 
sons Pulp & Lumber Company, which are regarded 
among the most valuable in the states named, William 
Whitmer & Sons, Inc., own a large tract of timber land 
in Florida, valuable equities in timber lands in Louis- 
iana, and own valuable water power rights in North 
Carolina. They also operate a large lumber yard in 
Philadelphia, and selling agencies in New York City, 
Pittsburg, Pa., Newark, N. J., and Philadelphia. 

SINKING FUND. 

Under the strict provisions of the trust deed, the 
Company is required to deposit with the Trustee, $3.00 
per thousand feet, log scale, for all timber cut, and 10 
cents per cord of wood cut, as a sinking fund to retire 
the principal of this bond issue. This sinking fund will 
operate to retire all of the bonds before cutting off 60 
per cent, of the timber covered by the mortgage. Should 
the deposit exceed the amount of bonds maturing in any 
year, the Trustee is required to purchase or call for re- 
demption, at a premium of iy 2 per cent., the unmatured 
bonds to an amount sufficient to exhaust the surplus. 



410 TIMBER BONDS 

TITLE AND LEGALITY. 
The titles to the lands covered by this mortgage have 
been carefully examined and certified by our counsel, 
Adams & Candee, of Chicago, and Milton C. Work, of 
Philadelphia, Pa., under whose legal direction the mort- 
gage and bonds were prepared. 

DATES OF PAYMENT.. 
The bonds are $500 and $1,000 each. Mature serially 
each six months from November 1, 1911, to November 1, 
1924. Unsold bonds offered mature as follows: 

MATURITIES. 
$20,000 Nov. 1, 1917 $35,000 Nov. 1, 1921 

30,000 May 1, 1918 45,500 May 1, 1922 

30,000 Nov. 1, 1918 40,000 Nov. 1, 1922 

40,000 May 1, 1919 45,500 May 1, 1923 

35,000 Nov. 1, 1919 33,000 Nov. 1, 1923 

35,500 May 1, 1920 45,000 May 1, 1924 

20,500 Nov. 1, 1920 10,000 Nov. 1, 1924 

35,000 May 1, 1921 
Price of bonds, all maturities, par and accrued interest, 
yielding six per cent. 
The above statements are based on information and 
data believed by us to be trustworthy and reliable, and, 
while not guaranteed by us, have been accepted and 
acted upon by us in the purchase and appraisal of the 
bonds and the property securing the same. 
A. B. Leach & Co., 140 Dearborn Street, Chicago; 149 
Broadway, New York; 28 State Street, Boston; 4th 
and Chestnut, Philadelphia. 

EXHIBIT NO. 12. 

McCoy & Company, Investment Bonds, 105 South La- 
Salle Street, Chicago, 111. Cable, address, "Horn- 
coy," Chicago. Circular No. 359. 

$150,000 (part of $600,000 issue) Butterfield Lumber 
Company, Norfield, Miss., first mortgage six per 
cent serial gold bonds. 

Dated July 1st, 1909. Maturing in series as below. 
Callable on July 1st, 1910, or on any interest date 
thereafter, at 102.50 and interest. Coupon bonds 
with privilege of registration as to principal. De- 
nominations, $500.00 and $1,000.00. Principal and 
semi-annual interest (January and July 1st) pay- 
able at the office of the Chicago Title and Trust 
Company, Chicago. 

Chicago Title & Trust Company and Wm, C. Niblack, 
Esq., Chicago, Trustees. 



BOND CIRCULARS 411 

FINANCIAL STATEMENT. 

Capital $ 225,000.00 

Net surplus 2,287,261.57 

Bonds authorized . 600,000 

Bonds held in reserve 300,000 

Bonds outstanding 300,000.00 

MATURITIES. 

$15,000 due July 1st, 1910 $15,000 due July 1st, 1915 

15,000 due July 1st, 1911 15,000 due July 1st, 1916 

15,000 due July 1st, 1912 15,000 due July 1st, 1917 

15,000 due July 1st, 1913 15,000 due July 1st, 1918 

15,000 due July 1st, 1914 15,000 due July 1st, 1919 

Price, any maturity, par and interest. 

MORTGAGE. 

These bonds are part of an authorized issue of $600,- 
000, secured by a closed first mortgage to the Chicago 
Title & Trust Company, and Mr. Wm. C. Niblack, Trus- 
tees, upon, approximately, 39,000 acres of compact, well 
located, virgin, long leaf, yellow pine timber, situated in 
Lawrence, Marion and Pike Counties, Mississippi, and 
upon the saw mill, planing mill, dry kilns, etc., of the 
Company, located at Norfield, Mississippi. The deed of 
trust provides that none of the timber while under this 
mortgage can be turpentined. 

EARNINGS. 
The net earnings of the Butterfield Lumber Com- 
pany for the past three years, as officially reported by 
the treasurer, have averaged $140,226.88 per annum, or, 
over three and one-half times the average annual re- 
quirements for interest and principal on the outstand- 
ing bonds. In view of the general depression existing 
for the past two or three years in all branches of busi- 
ness, we regard these figures as exceptionally meri- 
torious, and a strong endorsement of the excellent and 
capable management of the Company. 

AMOUNT AND VALUE OF TIMBER. 
A careful estimate of the timber made in detail by 
Messrs. J. D. Lacey & Co. and Lemieux Brothers & Co. 
shows that the lands under this mortgage contain over 
405,000,000 feet, log scale, of standing, merchantable, 
long-leaf yellow pine timber, 10 inches and over in 
diameter. We appraise the value of this timber alone 
at $1,620,000.00. 



412 TIMBER BONDS 

The balance sheet of the Butterfield Lumber Co. 
furnished us as of July 1, 1909, shows the following 
assets and liabilities as duly certified to by its treasurer: 

RESOURCES. 

465,000,000 ft. merchantable long-leaf yel- 
low pine at $4 per M $1,860,000.00 

34 miles standard gauge railroad and 

equipment 282,148.18 

Saw mill, dry kilns, machine shop, ma- 
chinery and houses 234,443.01 

12,000 acres cut-over land at $5 per acre. 60,000.00 

201.60 acres in town of Norfield 4,032.00 

Cash, accounts and bills receivable 105,852.30 

Logs in pond, manufactured lumber, lath, 

shingles, etc 87,047.05 

Interest, unexpired insurance, etc 2,328.64 

$2,635,851.18 
LIABILITIES. 

Bills payable $ 52,000.00 

Open accounts not yet due 43,709.86 

Uncollected freights, and accrued pay-roll. 27,879.75 
Capital and surplus 2,512,261.57 



$2,635,851.18 
From the above, it will be seen that these bonds are 
issued at the rate of less than $1.50 per M. feet of long- 
leaf yellow pine, conservatively valued at $4.00 per M. 
feet, and that the net capital and surplus of the Com- 
pany are over four times the amount of the entire 
authorized issue of bonds. 

SINKING FUND. 
The mortgage under careful restrictions, requires a 
deposit in advance with the Trustees of three dollars 
($3.00) for each one thousand feet of timber to be cut, 
such deposit to be made on the basis of the amount of 
timber found on each forty (40) acre tract, as deter- 
mined by the cruise, a copy of which is filed with the 
Trustees. 

FIRE HAZARD. 

Timber lands located in Mississippi and other South- 
ern States have never been destroyed by fire, owing to 
the entire absence of undergrowth and the unusual 
height of the trees. 



BOND CIRCULARS 413 

HISTORY OP THE COMPANY. 

In 1884 Messrs. Norwood and Butterfield formed a 
partnership for the conduct of a lumber business, in 
1887 the firm purchased a southern mill, incorporated 
under the style of Norwood & Butterfield and adopting 
their present title of Butterfield Lumber Company in 
July 19 00. The operations of the Company have been 
uniformly successful throughout this long period, as is 
shown by the fact that the Company now owns over 
465,000,000 feet (approximately 600,000,000 feet in 
addition to the timber under this mortgage) of excel- 
lent standing merchantable timber, a double band saw 
mill with a capacity of 32,000,000 feet per annum, plan- 
ing mill, dry kilns, houses for employes, thirty-four miles 
of standard gauge railroad and complete logging equip- 
ment. 

PURPOSE OF BOND ISSUE. 

The proceeds of this issue of bonds will be devoted 
to the funding of the floating indebtedness of the cor- 
poration, amounting to only $52,000, as of July 1, 1909; 
to providing additional working capital; to the making 
of such improvements and extensions to their plant as 
may be necessary from time to time, and to the pur- 
chase of additional timber holdings. 

TITLE AND LEGALITY. 

All matters pertaining to the legality of this issue, 
titles to the property, etc., have been favorably passed 
upon by Horace S. Oakley, Esq., Chicago, Illinois, and 
by Thomas Brady, Jr., Esq., of Brookhaven, Mississippi. 
Copies of the deed of trust, counsel's opinion and copy 
of our cruiser's detailed report, together with other 
pertinent data, are on file and may be seen at our office 
at any time. 

In the past we have handled and examined a large 
number of timber properties, and we beileve that we 
have seldom had the opportunity of recommending to 
our clients a more amply secured southern timber loan 
than in this present instance. 

We recommend these bonds for investment for the 
following reasons: — 

(1) The excellent quality of security. 

(2) The very conservative basis of the loan. 

(3) The excellent reputation and the successful his- 
tory of the makers. 



414 TIMBER BONDS 

(4) The unusually large net surplus of the Com- 
pany. 

(5) The serial feature which rapidly reduces the 
bonded indebtedness, and enhances the margin of safety. 

(6) The strong sinking fund provisions. 

(7) The excellent reputation which timber bonds 
of this character enjoy. 

The above bonds are offered subject to prior sale and 
advance in price. 

Telegraphic orders may be sent at our expense. Bonds 
will be shipped express prepaid, to any responsible bank, 
payable in Chicago or New York funds with exchange. 

All statements herein are official or based on in- 
formation which we regard as reliable, and while we do 
not guarantee them, they are the data upon which we 
have acted in the purchase of these securities. 

McCOY & COMPANY, 

105 South LaSalle St., 

CHICAGO. 



EXHIBIT NO. 13. 

Clark L. Poole & Co., Bankers, Commercial National 
Bank Bldg., Chicago. 

SIX PER CENT. TIMBER LAND BONDS. 

Secured by a first and closed mortgage on about 12,000 
acres of redwood timber lands, owned in fee simple, 
located in Mendocino County, California, adjoining 
the Pacific Ocean, containing over five hundred mil- 
lion (500,000,000) feet, log scale, of standing 
merchantable timber. 

We appraise the market value of the property covered 
by this bond issue at $1,250,000, or two and one- 
half times the amount of this bond issue. 

Redwood timber has never been destroyed by fire. There 
is no fire hazard in redwood timber. 

We own and offer, subject to prior sale: $500,000 first 
mortgage six per cent, serial gold bonds of the Men- 
docino Redwood Company, capital $750,000, of San 
Francisco, California. 

R. T. Buzard, president, San Francisco, California. 

E. S. Collins, vice-president, Ostrander, Washington. 

G. E. Tuman, secretary and treasurer, Fruitvale, Cali- 
fornia. 

Dated July 1, 1910. Coupon bonds $500 and $1,000 
each. Principal may be registered. Bonds mature: 



BOND CIRCULARS 



415 



$50,000 July 


1, 


1915 


$25,000 July 


1, 


1920 


25,000 January 


1, 


1916 


25,000 January 


1, 


1921 


25,000 July 


1. 


1916 


25,000 July 


1, 


1921 


25,000 January 


1, 


1917 


25,000 January 


1, 


1922 


25,000 July 


1. 


1917 


25,000 July 


1, 


1922 


25,000 January 


1, 


1918 


25,000 January 


1, 


1923 


25,000 July 


1, 


1918 


25,000 July 


1, 


1923 


25,000 January 


1, 


1919 


25,000 January 


1, 


1924 


25,000 July 


1, 


1919 


25,000 July 


1, 


1924 



25,000 January 1, 1920 
Principal and semi-annual interest (January 1st and 
July 1st) payable at Central Trust Company 
of Illinois, Trustee, Chicago. 
The owners of the Mendocino Redwood Company are 
successful lumbermen and timbermen of Pennsylvania, 
California and Washington and part owners of several 
of the largest tracts of redwood, pine and fir timber 
lands on the Pacific Coast and elsewhere. 

TIMBER. 

This mortgage to the Central Trust Company of Illi- 
nois, as Trustee, is a first lien on 12,000 acres of well 
located virgin redwood timber lands in one solid body, 
owned in fee simple, located in Mendocino County, Cali- 
fornia. These lands are heavily timbered with a good 
quality of redwood (85%) and fir (15%) and lie along 
either side of the Usal River and branches. This tract 
controls a large amount of additional timber, the natural 
outlet for which is through this tract. 

The holdings of the Mendocino Redwood Company 
are surrounded on the north and east by the properties 
of the Sage Land & Improvement Company, of Albany, 
New York, and on the south and east by the Cottoneva 
Lumber Company, formerly the New York & Pennsyl- 
vania Redwood Company, two of the strongest redwood 
timber companies on the coast. Both of these proper- 
ties, and other holdings in that vicinity, are held at 
$3.00 per thousand feet and higher. 

The owners of the Mendocino Redwood Company, 
who are largely interested in the Cottoneva Lumber 
Company and other lumber companies owning timber 
lands in this section, organized the Mendocino Lumber 
Company for the purpose of purchasing and holding the 
tract of timber lands securing this bond issue, and it is 
their present intention not to manufacture any of this 
timber for at least five years. Interest and maturing 
bonds will be paid out of the profits from their other 
operations. 



416 TIMBER BONDS 

TIMBER ESTIMATES. 

The estimates on this tract, made in detail by Mr. A. 
W. Elam, were checked and the properties purchased 
under the supervision of Mr. George E. Tuman, timber 
expert. During the past fifteen years Mr. Tuman has 
estimated and superintended the purchase of coast timber 
aggregating thirteen billion five hundred million feet, for 
the following large lumber companies: 

Big Lagoon Lumber Company, owning four billion feet 
of redwood timber. 

Cottoneva Lumber Company (formerly New York & 
Pennsylvania Redwood Company), owning about two bil- 
lion feet of redwood timber. 

Curtis, Collins & Holbrook Company, owning over two 
and one-half billion feet of sugar and white pine timber in 
California. 

Rogue River Timber Company, owning over three bil- 
lion feet of sugar and white pine and fir timber in Oregon. 

And about twelve smaller companies owning at least 
one-half billion feet each. 

We have also had these estimates checked by our own 
cruiser, Mr. W. E. Straight, who reports the estimates 
conservative, the timber of excellent quality, green and 
thrifty and the whole situation favorable from a logging 
and operating standpoint. 

The detail estimates are on file with the Trustee, the 
Central Trust Company of Illinois, and in our office, and 
are summarized as follows: 

Redwood 412,015,000 feet 

Fir 89,335,000 feet 

Total 501,350,000 feet 

after allowing 20 per cent, for breakage, but owing to the 
lay of the land the breakage will not amount to more than 
10 per cent. Average per acre, about 42,000 feet. 

The above estimates are based on log scale of uncut 
merchantable timber 24 inches and up. Our Mr. Straight 
reports that the average height of the trees is about 200 
feet, but in estimating the timber only seven 16-foot logs 
were counted. The average diameter of the timber is 4% 
feet inside of bark five feet above the ground and the logs 
will average about 450 board feet to the 16-foot log. 

VALUE OP PROPERTIES. 

We appraise the market value of this timber at $2.50 
per thousand feet, or $1,253,375.00, or over two and one- 
half times the entire amount of this bond issue. Other 



BOND CIRCULARS 417 

holdings of redwood timber surrounding this tract are 
held at $3.00 per thousand feet and higher. 

The commercial supply of redwood is practically lim- 
ited to three counties in California, forming a small strip 
of territory close. to the coast north of San Francisco. 
The entire stand is estimated at less than one hundred 
billion feet. It is the oldest type of forest growth found 
in the United States. Redwood timber is practically all 
in the hands of a few strong holding companies and owner- 
ship seldom changes hands. 

OFFICERS. 

R. T. Buzard, President, was for many years a suc- 
cessful lumberman in Pennsylvania, where he was a large 
stockholder and manager of the Salmon Creek Lumber 
Company and the Pennsylvania Lumber Company, known 
as the Collins properties, in the vicinity of Tionesta and 
Sheffield, Pennsylvania. Mr. Buzard is the principal stock- 
holder in a southern lumber company operating In yellow 
pine timber at Lamison, Alabama. He is also a large 
stockholder in the Lagoon Lumber Company, which owns 
about four billion feet of redwood, and a large stockholder 
and general manager of the Cottoneva Lumber Company 
(formerly known as New York & Pennsylvania Redwood 
Company), which company owns about two billion feet of 
redwood timber and operates a saw mill. 

E. S. Collins, Vice-President, was formerly a Pennsyl- 
vania lumberman and associated with his father, Mr. T. D. 
Collins, of Nebraska, Pa., one of the wealthiest and most 
successful lumbermen in Pennsylvania, who has for many 
years and is at the present time operating six saw mills 
in Western Pennsylvania. Mr. Collins is president and 
general manager of the Ostrander Railway & Timber Com- 
pany, of Ostrander, Wash.; president and general man- 
ager of the Castle Rock Timber Company, of Castle Rock, 
Wash.; vice-president of and large stockholder in the 
Curtis, Collins & Holbrook Company, of California, owning 
two and one-half billion feet of sugar and white pine 
timber; vice-president and stockholder in the Pennsylvania 
Lumber Company and principal owner of a large retail 
lumber concern at Oakland, Cal. Mr. Collins is also a 
large owner of timber lands in Oregon and is one of the 
prominent lumbermen of the Northwest. 

G. E. Tuman, Secretary and Treasurer, is director and 
stockholder in the Curtis, Collins & Holbrook Company; 
stockholder in the Wheeler Timber Company, Nelson Lum- 
ber Company, Cottoneva Lumber Company and the Big 
Lagoon Lumber Company, and is recognized as one of the 



418 TIMBER BONDS 

most experienced timber and lumber men on the Pacific 
Coast. 

The owners of the Mendocino Redwood Company are 
successful lumbermen of Pennsylvania, California and 
Washington and part owners of several of the largest 
tracts of redwood, pine and fir timber lands on the Pacific 
Coast. 

REDEMPTION FUND. 

The mortgage, under careful restrictions, requires that 
the company must deposit with the Trustee $2.00 per thou- 
sand feet, log scale, for all redwood and fir timber cut, 
based on the estimates on file in our office and with the 
Trustee. The company is required to make this deposit 
for each forty acres or more before cutting any timber on 
the same. The provisions of the mortgage covering this 
point are rigidly and carefully drawn. This deposit ap- 
plies to the payment of the principal of the bonds only, 
and is on a basis of double the amount for which the 
timber is bonded and will operate to pay off the entire 
issue of bonds when less than one-half of the standing 
timber has been cut. 

Should the amount deposited under this redemption 
fund exceed the amount of bonds maturing in any year, 
the Trustee is required to purchase or call for redemption, 
at a premium of 3 per cent, and accrued interest, bonds 
of an amount sufficient to exhaust the surplus. Through 
the operation of this redemption fund the bonded debt per 
thousand feet of timber is decreased until the last series 
of bonds are secured at the rate of only ten cents per thou- 
sand feet. In other words, the equity of this loan in- 
creases as the bonds are paid off, without taking into 
account any increase in the value of the timber lands. 

BOND ISSUE. 

Proceeds of this bond issue will be used to retire all 
the outstanding obligations of the company, and will leave 
it entirely free from any indebtedness outside of this bond 
issue. 

TIMBER VALUES. 

It is now a matter of common knowledge that standing 
timber is becoming more scarce and higher in market 
price. This increase in values has been especially marked 
within the last four years, owing to the rapid depletion 
of the forests to supply the constantly increasing demand 
for lumber. The following is taken from statistics of the 
Forest Service, United States Department of Agriculture: 

"The consumption of lumber per capita is greater than 
ever before, and the timber of this country is being con- 



BOND CIRCULARS 419 

sumed three to four times as fast as its natural increase. 
The increase in population from 1880 to 1900 was 52 per 
cent, but the increase in lumber consumption was 94 per 
cent. During the period from 1899 to 1906 the increase in 
production of redwood lumber (which is the principal 
timber standing on these lands) was over 83 per cent and 
the increase in the value of redwood was 64 per cent. 
During the same period the increase in production of 
fir timber was 186 per cent and the increase in value was 
63 per cent." 

With an increasing demand for lumber products and 
a decreasing supply of the raw material — standing timber 
— it is evident that the values of timber lands will con- 
tinue to increase. There is today no commodity more 
stable in price than standing timber, and consequently no 
security upon which money can be loaned with greater 
safety. 

FIRE HAZARD. 

It is a well known fact that a redwood forest has never 
been destroyed by fire. There is no fire hazard whatever 
in redwood timber. This statement will be verified by 
lumbermen and other persons familiar with this timber. 
The matter of fire hazard is not taken into consideration 
by lumbermen and others who own or are considering the 
purchase of redwood timber. This is one of the most im- 
portant facts in connection with this security 
TITLES AND MORTGAGE. 

The titles to the land and timber covered by this mort- 
gage have been carefully examined and certified by our 
counsel, Adams & Candee, of Chicago, under whose legal 
direction the mortgage and bonds were prepared. 

The bonds are issued in denominations of $500 and 
$1,000 each and are due and payable serially from five to 
nine years (see first page). All or any of the bonds may 
be paid at any interest period prior to maturity on sixty 
days' notice, at a premium of 3 per cent and accrued in- 
terest. 

Prices of bonds for long or short time, par and accrued 
interest, yielding six per cent. 

The above statements are based on information and 
data believed by us to be trustworthy and reliable, and 
while not guaranteed by us, have been accepted and acted 
upon by us in the purchase and appraisal of the bonds 
and the property securing the same. 

CLARK L. POOLE & CO., 

Bankers, 

Commercial National Bank Bldg., Chicago, 111. 



420 TIMBER BONDS 

EXHIBIT NO. 14. 

Charles M. Smith & Company, Bonds for Investment, First 
National Bank Building, Chicago. 

This issue of bonds is a legal investment for Michigan 
Savings Banks and Trust Funds. 

We own and offer $238,000 (total issue $275,000) closed 
First Mortgage 6 per cent. Serial Gold Bonds of the 
Conasauga Lumber Company, Conasauga, Tenn. 

Dated June 1, 1910. Due serially as shown below. Inter- 
est coupons payable June and December 1st, at First 
National Bank of Detroit or First National Bank of 
Chicago. Redeemable on any interest date after sixty 
days' notice at 102% and interest. Denominations, 
$500 and $1,000. Principal may be registered with the 
Trustee. Bonds mature as follows: 
$ 1,000 December 1, 1911 $15,000 December 1, 1915 
14,000 June 1, 1912 15,000 June 1, 1916 

12,000 December 1, 1912 15,000 December 1, 1916 
15,000 June 1, 1913 15,000 June 1, 1917 

15,000 December 1, 1913 15,000 December 1, 1917 
15,000 June 1, 1914 15,000 June 1, 1918 

13,500 December 1, 1914 15,000 December 1, 1918 
15,000 June 1, 1915 15,000 June 1, 1919 

$17,500 December 1, 1919 
Price, par and interest, yielding 6 per cent. 

SECURITY. 

The mortgage to the Security Trust Company, of De- 
troit, Mich., Trustee, is a first lien on about 33,000 acres of 
virgin timber lands, containing 168,400,000 feet of stand- 
ing merchantable timber, consisting principally of white 
and yellow pine, poplar, and white and red oak, lying in a 
solid body in Polk County, Tennessee. The mortgage also 
covers a modern band and gang saw mill, with a capacity 
of 20,000,000 feet per annum, planing mill, dry kilns, etc., 
10% miles of completely equipped standard gauge logging 
railroad, store building and employees' houses, located at 
Conasauga, Tenn. 

The timber mortgaged is conservatively appraised at 
$822,517.50, or about three times the amount of this bond 
issue. 

RAILWAY, ESTIMATES AND APPRAISAL. 

The company's plant at Conasauga, Tenn., is located on 
the main line of the Louisville & Nashville Railway, afford- 
ing excellent shipping facilities. 

J. P. Brayton, the well known public estimator, of 
Chicago, estimates the quantity of merchantable standing 



BOND CIRCULARS 421 

timber at 168,400,000 feet, log scale, the appraised value of 
which is as follows : Feet per 1000 

Yellow Pine 71,275,000 $3.50 $249,462.50 

White Pine 30,425,000 6.00 182,550.00 

Poplar 13,705,000 12.00 164,460.00 

White Oak 11,660,000 6.00 69,960.00 

Red Oak 14,885,000 4.00 59,540.00 

Other Hardwoods 26,450,000 77,160.00 

Oak and Hemlock Bark, 6,635 cords 6,635.00 

Oak R. R. Ties, 127,500 pieces 12,750.00 

$822,517.50 
FINANCIAL STATEMENT. 
(Before issuance of bonds.) 
ASSETS. 
Quick assets — cash, bills and ac- 
counts receivable, manufactured 

lumber and merchandise $120,564.12 

Standing timber 800,000.00 

Real estate (store, office and dwell- 
ings) 23,427.79 

Logging railroad and 

logging equipment.. $117,239.78 
Saw and planing mill. 62,879.89 

180,119.67 

$1,124,111.58 
LIABILITIES. 

Accounts payable $26,951.88 

Bills payable 197,999.76 $224,951.64 

Capital stock 275,600.00 

Surplus 623,559.94 



$1,124,111.58 
The above statement does not include any valuation on 
about 33,000 acres of land owned in fee simple. 

PURPOSE OF BOND ISSUE. 

The proceeds of the bonds will be used to pay balance 

on timber purchase (included in bills payable account), 

retire floating indebtedness and provide additional working 

capital, leaving the bonds as the only debt of the company. 

HISTORY AND MANAGEMENT. 
The Conasauga Lumber Company was organized in 1907 
by well known and successful lumbermen of Nashville, 
Tenn. These men, now members of its Board of Directors, 
are: 



422 TIMBER BONDS 

C. B. Benedict, Conasauga, Tenn., President and General 
Manager of Conasauga Lumber Company. 

M. F. Greene, Nashville, Tenn., Vice-President of Cona- 
sauga Lumber Company, and Secretary and Treasurer of 
The Davidson, Hicks & Greene Company, Lumber Mer- 
chants, Nashville, Tenn. 

John Byrns, Cincinnati, O., Secretary and Treasurer of 
Conasauga Lumber Company. 

Walter Keith, Nashville, Tenn., Vice-President of Fourth 
National Bank of Nashville, and owner of a large interest 
in Keith, Simmons & Co., Nashville, Tenn., dealers in Hard- 
ware and Mill Supplies. 

John W. Love, Nashville, Tenn., of Love, Boyd & Co., 
Lumber Merchants. 

Arthur B. Ransom, Nashville, Tenn., President of John 
B. Ransom & Company, Lumber Merchants, and of Nashville 
Hardwood Flooring Company, manufacturers of flooring. 

C. H. Benedict, Nashville, Tenn., retired capitalist. 

Since its organization the company has been continu- 
ously and profitably engaged in the manufacture of lumber. 

SINKING FUND. 

The trust deed provides that before any timber is cut 
the company must pay to the Trustee as a sinking fund for 
the redemption of bonds, $3.00 per thousand feet, according 
to the timber estimates on file with the Trustee. After re- 
moval of timber the land may be released by the Trustee 
on payment of $3.50 per acre into the sinking fund. 

The sinking fund is sufficient to retire all the bonds 
before sixty per cent of the timber mortgaged has been cut. 

FIRE HAZARD. 
Timber located in the southern states has never been 
destroyed by fire. Absence of undergrowth and height of 
trees renders any serious fire damage impossible. 

EXAMINATION. 

Before purchasing this issue we made a thorough per- 
sonal investigation of all of the conditions on which the 
security depends. All titles to the property have been 
carefully examined and approved by competent attorneys, 
under whose supervision the mortgage was drawn and the 
bonds issued. 

Copies of trust deed, attorney's opinion, detailed timber 
estimates, and other data pertinent to the issue may be 
seen at our office. 

All statements herein are official or are based on infor- 
mation and data believed by us to be trustworthy and 



BOND CIRCULARS 423 

reliable, and while not guaranteed, have been accepted and 
acted upon by us in the purchase and appraisal of the 
bonds and the property securing the same. 

Bonds are offered subject to prior sale. 

Bonds will be delivered where desired, express prepaid, 
with exchange. 

Telegrams may be sent at our expense. 

CHARLES M. SMITH & COMPANY, 

Bankers 

First National Bank Bldg., Chicago, 111. 

EXHIBIT NO. 15. 

Lyon, Gary & Company, 204 Dearborn St., Chicago, 111. 

$40,000 Fischer Lumber Co. 6 per cent First Mortgage 

Serial Gold Bonds. 
Dated January 2, 1911, maturing semi-annually July 1, 1912, 

to January 1, 1916. Redeemable at 103 and interest, in 

whole or in part on any interest day, on 90 days' notice. 

Principal and interest payable in Chicago or Portland, 

Ore., on July 1st and January 1st. 
Coupon Bonds at $1,000 each; may be registered as to 

principal. Union Trust Company of Chicago and John 

K. Lyon, Trustees. 

MATURITIES. 

$5,000 July 1, 1912 $5,000 July 1, 1914 

5,000 Jan. 1, 1913 5,000 Jan. 1, 1915 

5,000 July 1, 1913 5,000 July 1, 1915 

5,000 Jan. 1, 1914 5,000 Jan. 1, 1916 

Principal and interest guaranteed by endorsement of Fred 
Fischer, Sr., Henry Fischer, Fred Fischer, Jr., Walter 
Fischer and Carl E. Fischer; all being stockholders and 
directors of the company. 
The security for the bonds may be summarized at fol- 
lows: 

1. First Mortgage lien on 1140 acres of land owned in 
fee, situated in the Counties of Linn and Lane, in the State 
of Oregon, upon which there are approximately 72,000,000 
feet of standing and living yellow fir timber. 

2. The timber may be conservatively valued at $1.25 
per thousand feet or a total valuation of approximately 
$90,000. 

3. There is also conveyed by the mortgage as further 
security to the loan, a saw and planing mill plant and log- 
ging equipment, which may be conservatively valued at 
$30,000. 



424 TIMBER BONDS 

4. The loan is at the rate of 55 cents per thousand feet 
on the timber. 

5. Under the trust deed the company is required to 
pay to the Trustee $1.50 per thousand feet for timber 
desired to be cut; from this provision it will be seen that 
the whole loan will be paid before practically one-third of 
the timber pledged is cut. 

6. Frequent inspection of the property is provided for 
at the expense of the borrower. 

7. Should the timber be damaged by fire or the other 
elements, the company must within sixty days after such 
loss has been determined pay to the Trustee 75 cents per 
thousand feet for the timber so damaged, and an addi- 
tional 75 cents when the timber is removed. 

8. The hazard of fire is minimized by the property 
being located in what is called the "fog-belt" just west of 
the Cascade Mountains. 

9. The valuations, titles and legal matters have been 
passed on by competent parties; the timber and its value 
by our own cruisers and the titles and legal matters by 
W. W. Gurley of Chicago and E. E. Barthell of Nashville, 
Tenn. 

10. The whole property lies within a few hours' jour- 
ney of Portland, Ore. 

All statements made in this circular are based upon 
information which we regard as reliable and upon which 
we acted in the purchase and valuation of the securities 
offered; such offerings being made subject to prior sale. 

Price on application. 

LYON, GARY & COMPANY, 

Lumbermen and Bankers, 

204 Dearborn St., Chicago, 111. 

EXHIBIT NO. 16. 

Circular No. 677— September, 1909. 

Peabody, Houghteling & Co., 105 S. LaSalle St., Chicago. 

(Established 1865.) 

Cable address, "Hought," Chicago. Codes used, Lieber and 

A, B, C, 5th Edition. 
$200,000 First Mortgage 6 per cent Serial Gold Bonds of 

the Craig Mountain Lumber Company. 
Dated August 2, 1909. Payable in series as below. Coupon 
Bonds of $500 and $1,000 denominations with privilege 
of registration as to principal. Principal and semi- 
annual interest payable at the office of Peabody, Hough- 
teling & Co., Chicago, 111. First Trust & Savings Bank, 
Chicago, and Augustus S. Peabody, Trustees. 



BOND CIRCULARS 425 

MATURITIES. 
$25,000 1 year, August 1, 1910 
25,000 1V 2 years, February 1, 1911 
25,000 2 years, August 1, 1911. 
25,000 2V 2 years, February 1, 1912 
25,000 3 years, August 1, 1912 
25,000 3% years, February 1, 1913 
25,000 4 years, August 1, 1913 
25,000 AY 2 years, February 1, 1914 
25,000 5 years, August 1, 1914 
25,000 5% years, February 1, 1915 
25,000 6 years, August 1, 1915 
25,000 6% years, February 1, 1916 
The above schedule of maturities comprises $300,000, 
which is the total issue of bonds authorized by the mort- 
gage. $100,000, however, will not be issued until the com- 
pany has acquired and placed under the mortgage sumcient 
additional lands to bring its total acreage up to a minimum 
of 9,500 and its total stumpage to at least 175,000,000 feet. 
These additional lands and timber will be acquired in the 
immediate future and are subject to the approval of Pea- 
body, Houteling & Co. When the entire $300,000 of 
bonds has been issued, the valuation of the company's 
assets will be in excess of $1,000,000. 

VALUATION. 

These bonds, which are issued for the purpose of com- 
pleting the company's mills and railroad, are secured by 
an absolute First Mortgage on 5900 acres of land and 138,- 
000,000 feet of merchantable timber located in Nez Perce 
County, Idaho, together with saw mill, planing mill, rail- 
road, rolling stock, and logging equipment. 

Based on an examination of the company's timber, made 
on our behalf by the well-known expert, Mr. J. P. Brayton, 
and on the estimated cost of the company's mills and rail- 
road, we value the security behind these bonds as follows: 

Land and timber $597,650 

Plant, logging equipment and railroad 212,000 

Total fixed assets $809,650 

SINKING FUND. 

Under the terms of the Mortgage, the company agrees 
to pay in to the Old National Bank in Spokane on or before 
the fifteenth day of every month, beginning the second 
month after the commencement of operations, subject to 
the Trustee's order, a sinking fund of $3.50 per thousand 



426 TIMBER BONDS 

feet on all timber cut from the company's lands during the 
preceding calendar month, or months. Any surplus left in 
the Sinking Fund at the end of any year, at the company's 
option, may be — 

1. Left in the Sinking Fund at interest; 

2. Used to retire the bonds in the reverse of their nu- 
merical order at 102% and interest. 

3. Used for the purchase of additional timber lands, 
clear of encumbrance, which will become additional security 
for the bonds. 

In the last event, however, the investment of the surplus 
sinking fund is strictly subject to the written approval of 
Peabody, Houghteling & Company. 

This Sinking Fund is sufficient to pay off the entire 
principal of these bonds from the exhaustion of less than 
one-half of the timber security. 

SECURITY. 

The security behind these bonds consists of timber lands 
in Nez Perce County, Idaho, about twenty miles in a direct 
line southeast of the city of Lewiston. These lands com- 
prise — 

5,900 acres of land and timber owned in fee simple, 
1,042 acres of timber owned in fee simple, 



Total, 6,942 acres 

These lands contain, according to the estimate of Mr, 
J. P. Brayton — 

132,405,000 feet of pine, 
3,626,000 feet of fir, 
2,320,000 feet of tamarack, 



Total, 148,350,000 feet of merchantable timber. 

These timber lands are, for the most part, level and the 
timber runs large and smooth and practically free from 
unsound trees. Most of the lands are suitable for farming 
purposes; the soil is fertile, and the lands will be in good 
demand at from $15.00 to $20.00 an acre after the timber 
has been removed. 

These bonds are also secured by the company's mills 
and railroad, which will be completed and in operation 
within six months. 

The mills, which will consist of saw mill, planing mill, 
dry kiln, lumber sheds, etc., with an annual capacity of 
20,000,000 feet, will be of the most up-to-date character in 
arrangement, construction and equipment, and will enable 
the company to produce lumber at a low rate. The rail- 
road will be about six miles long, of standard gauge and 



BOND CIRCULARS 427 

construction, fully equipped to handle the company's busi- 
ness, and will connect with the Northern Pacific Railroad. 

OPERATION. 

Because of the close proximity of the timber to its mill, 
the ideal character of the land for economic logging, the 
first-class equipment at its disposal, and the unusually 
large percentage of high grade lumber, the company's 
operations should be exceedingly profitable. 

In his report of August 5th, Mr. J. P. Brayton esti- 
mates the cost of manufacturing from the stump to the car 
at $8.50 per thousand feet. He considers $19.00 per thou- 
sand zeet f. o. b. cars at the mill a safe average selling 
price. On this basis, the stumpage of 175,000,000 feet be- 
hind the total bond issue of $300,000 will produce the fol- 
lowing results: 
175,000,000 feet at average selling price of $19.00 

f . o. b. cars $3,325,000 

Cost of manufacturing and loading on cars at $8.50 

per thousand feet 1,487,500 

Net amount available for the protection of prin- 
cipal and interest of these bonds 1,837,500 

Total amount of principal and interest of these 

bonds 367,500 

On this basis the stumpage will produce over five times 
the amount necessary to protect both principal and interest 
of the entire issue. 

MANAGEMENT AND OWNERSHIP. 

The stockholders of the Craig Mountain Lumber Com- 
pany are men of substantial means and large experience, 
and the management of the company's affairs is in conserva- 
tive and thoroughly practical hands. 

The stockholders have an actual cash investment of 
$300,000 behind these bonds. 

We have investigated these properties thoroughly. The 
timber lands have been examined and reported on in 
detail by Mr. J. P. Brayton, one of the most experienced 
and best known timber experts in the country. The com- 
pany's books have been audited by the Investors Audit 
Company, and titles to the company's property and all legal 
matters pertaining to this issue have been approved by 
F. M. Goodwin, Esq., of Spokane, Wash. 

We recommend these bonds as a safe investment for 
the following reasons: 

First: The value of the security is over three times the 
amount of the issue. 



428 TIMBER BONDS 

Second: The stockholders have an actual cash invest- 
ment of over $300,000 behind the bonds. 

Third: The timber behind these bonds is of unusually 
fine quality and it is absolutely exempt from fire-risk. 

Fourth: The stockholders of the company are finan- 
cially strong and well able to protect their investment, and 
the management is experienced, successful and thoroughly 
practical. 

The bonds will be ready for delivery about August 25th 
and will be delivered at any bank desired, express prepaid. 

Price, par and accrued interest. 

Telegraphic orders may be sent at our expense. 

PEABODY, HOUGHTELING & CO., 

105 S. LaSalle Street, 
Chicago. 

EXHIBIT NO. 17. 
Allerton, Greene & King, Bonds, The Rookery, Chicago. 

We own and offer $125,000 The Hardwood Manufacturing 
Company, Louisville, Ky., First Mortgage 6 per cent. 
Gold Bonds. 

Dated March 1, 1911. Due serially in semi-annual install- 
ments. Redeemable on any interest date at 102% and 
interest. Denominations, $1000 and $500. Principal 
and semi-annual interest payable at the Union Trust 
Company, Trustee, Detroit, Mich. 







MATURITIES. 






15,000 March 


1, 


1912 


$7,500 Sept. 


1, 


1916 


7,500 Sept. 


1, 


1912 


7,500 March 


1, 


1917 


7,500 March 


1, 


1913 


7,500 Sept. 


1, 


1917 


7,500 Sept. 


1, 


1913 


7,500 March 


1, 


1918 


7,500 March 


1, 


1914 


7,500 Sept. 


1, 


1918 


7,500 Sept. 


1, 


1914 


7,500 March 


1, 


1919 


7,500 March 


1, 


1915 


7,500 Sept. 


1, 


1919 


7,500 Sept. 


1, 


1915 


7,500 March 


1, 


1920 


7,500 March 


1, 


1916 









We recommend these bonds as a safe and conservative 
investment for the following reasons: 

1. All of the lands including 20,000 acres of virgin 
hardwood timber, also, mill site property, is owned in fee 
simple by the company. 

2. The bond issue is secured by a closed, absolute first 
mortgage. 

3. The bond issue is only about one-fifth of the value 
of the property mortgaged. 



BOND CIRCULARS 429 

4. The Sinking Fund will retire the entire bond issue 
before one-half of the timber is cut. 

5. The assets of the company, exclusive of the timber 
lands, is about on and one-half times the amount of the 
bond issue. 

6. The owners and managers of the company are ex- 
perienced and successful lumber men. 

7. The interest return is attractive. 
Price, 100 and interest, yielding 6 per cent. 

ORGANIZATION. 

The Hardwood Manufacturing Company was organized 
under the laws of Kentucky, having its principal office in 
the City of Louisville, Ky., in 1909. The stockholders and 
directors are experienced and successful business men. 
Mr. A. L. Musselman, President of the Company, has been 
identified with the lumber business for the past twenty- 
five years and is regarded as one of the best posted men 
on hard woods in the South. 

Mr. Henry Koehler, Vice-President of the Company, 
owns and operates the largest retail lumber business in 
the City of Louisville, Ky. These men are in control of 
the Company's management, giving it their personal atten- 
tion and the benefit of their practical experience. 

SECURITY. 

These bonds are secured by a closed, absolute first 
mortgage on all of the property of the Company now owned 
or hereafter acquired, consisting of about 20,000 acres of 
uncut hardwood timber lands owned in fee simple by the 
Company. This tract contains over 100,000,000 feet of 
standing merchantable timber, consisting principally of 
White Oak, Red Oak, Gum, Cypress, Hickory, Cherry and 
Pine. Also its mills, logging machinery, barges, tugs, 
launches, etc. 

The Company's plant consists of a band sawmill, hav- 
ing a capacity of 50,000 feet per day. 

PURPOSE OF BOND ISSUE. 
The proceeds of this issue will liquidate all other in- 
debtedness of the Company and will provide funds for ad- 
ditions and improvements and leave ample funds for work- 
ing capital. 

VALUATION OF PROPERTY. 
The above lands have been carefully cruised by Mr. J. 
P. Brayton, of Chicago, the well known timber expert. Mr. 
Brayton estimates the stand of merhantable timber at over 



430 TIMBER BONDS 

100,000,000 feet and the value, exclusive of plant and equip- 
ment, at $420,000. 

In addition to the timber above described, the bonds 
are further secured by closed, first mortgage on real es- 
tate, plants and equipment located in the City of Monroe, 
La., all of which is owned in fee by The Hardwood Man- 
ufacturing Company. The value of these assets, exclusive 
of the timber lands, is estimated at $175,000. 

The total net assets of the Company, upon which these 
bonds are an absolute first mortgage, are about $600,000, a 
sum equal to nearly FIVE TIMES THE AMOUNT OF THE 
BOND ISSUE. This sum does not include any valuation 
on the land, which is worth at least five dollars per acre, 
or about $100,000 in addition to the above. 

SINKING FUND. 

The Trust Deed provides that the Company will, on the 
first days of March, June, September and December, file 
with the Union Trust Company, Trustee, a sworn state- 
ment of all merchantable timber cut upon the lands dur- 
ing the three calendar months preceding the filing of such 
statement, and will within fifteen days after filing of such 
statement, pay into the Trustee, in cash, the sum of $3.00 
for each 1,000 feet of Oak timber and the sum of $2.00 for 
each 1,000 feet of other timber so cut. 

Should the Sinking Fund exceed the amount of bonds 
maturing in any year, the Trustee is required to call for 
redemption, at 102% and accrued interest, unmatured 
bonds to the amount sufficient to exhaust the surplus. The 
Sinking Fund will be sufficient to retire all of the bonds 
before one-half the timber has been cut. 

LOCATION AND OPERATION. 

This tract of 20,000 acres of virgin hardwood timber 
land is situated along the Bayou D'Arbonne, which flows 
into the Ouachita River a few miles above the City of 
Monroe, La. The timber lies on each side of this naviga- 
ble stream, within an average distance of three-quarters 
of a mile. The logging operation is a simple one and re- 
quires no expensive railroad tracks and equipment. The 
logs are taken from the property by means of a skidder 
and are then hauled to the sawmill, located in the City of 
Monroe, an average distance of about fifteen miles. The 
timber is cut into lumber, and placed upon railroad cars 
for shipment. The Company has access to the St. Louis 
& Iron Mountain R. R., Vicksburg, Shreveport & Pacific 
R. R. and Arkansas, Louisiana & Gulf R. R. 



BOND CIRCULARS 431 

LEGALITY. 
The mortgage has been drawn and the titles to the 
timber covered by this mortgage have been passed upon 
by Hon. Charles B. Wood of Chicago. Adequate insurance 
covering the mill and equipment is pledged under the mort- 
gage. 

FINANCIAL STATEMENT. 
Financial condition of the Company after the proceeds 
of bonds are included, is as follows: 

ASSETS. 

Standing Timber (20,000 acres owned in fee) $420,000 

Sawmill Plant, Equipment, etc 175,000 

$595,000 
LIABILITIES. 

Capital Stock (fully paid) $172,000 

First Mortgage Bonds (this issue) 125,000 

Surplus 298,000 

$595,000 
We offer only such bonds as we consider suitable for the 
investment of our own funds. All statements in this cir- 
cular are our own opinion or are based on information 
which we regard as reliable. Bonds will be delivered to 
any responsible bank, charges prepaid. Telegrams may be 
sent at our expense. 

ALLERTON, GREENE & KING, 
Chicago. 

EXHIBIT NO. 18. 

CHARLES M. SMITH & COMPANY, 
Bonds for Investment, 
First National Bank Building. 
Chicago. 
This issue of bonds is secured by standing timber, a nat- 
ural product being consumed more rapidly then it is 
being replaced — a security constantly increasing in 
value. The arrangement whereby a portion of the 
bonds is paid every six months, beginning October 1, 
1911, increases the security back of the outstanding 
and later maturing bonds. 
We own and offer: $150,000 First Mortgage 6 Per Cent 
Serial Gold Bonds of the 

WYATT LUMBER COMPANY, LIMITED, 

Wyatt, Louisiana. 

Due serially as shown below. Interest coupons payable 



432 TIMBER BONDS 

April and October 1st, at Central Trust Company of 
Illinois, Trustee, Chicago. Redeemable on any inter- 
est date after sixty days' notice at 102 and interest. 
Denominations, $500 and $1,000. Principal may be 
registered with the Trustee. Bonds mature as follows: 
$15,000 October 1, 1911 $12,000 April 1, 1915 
7,500 April 1, 1912 12,000 October 1, 1915 
7,500 October 1, 1912 12,000 April 1, 1916 
12,000 April 1, 1913 12,000 October 1, 1916 
12,000 October 1, 1913 12,000 April 1, 1917 
12,000 April 1, 1914 12,000 October 1, 1917 
12,000 October 1, 1914 

Price, par and interest, yielding 6 per cent. 

SECURITY. 

The mortgage to the Central Trust Company of Illinois, 
of Chicago, is a first lien on 124,632,000 feet of standing, 
merchantable timber, consisting of yellow pine, white oak 
and other hardwoods located on 23,629 acres of land, about 
two-thirds of which is owned in fee simple, lying in prac- 
tically a solid body in Sabine Parish, Louisiana. The 
mortgage also covers a modern sawmill with a capacity of 
15,000,000 feet per annum, planing mills, dry kilns, store 
building and employes' houses, located at Wyatt, Louisiana. 

A conservative appraisement of the timber mortgaged, 
found in detail on the following page, shows it worth $460,- 
214— OVER THREE TIMES the amount of the bonds. The 
assets of the Company are over $800,000— OVER FIVE 
TIMES the amount of the bonds. Principal and interest 
is unconditionally guaranteed by A. H. Henderson and G. 
E. Henderson, of Wyatt, Louisiana, by endorsement on each 
bond. 

ESTIMATES AND APPRAISED VALUE. 

The yellow pine timber has been estimated by Lemieux 
Brothers & Company, the well known Public Estimators, of 
New Orleans, Louisiana. The white oak and other hard- 
woods have been estimated by Ryan & Self, expert esti- 
mators of timber in Sabine Parish. The estimate and ap- 
praised value of the timber under the mortgage is as fol- 
lows: 

Yellow Pine 83,050,000 ft. at $4.00 per 1,000 ft.$332,200 

White Oak 14,950,000 ft. at 5.00 per 1,000 ft. 74,750 

Other hardwoods. 26,632,000 ft. at 2.00 per 1,000 ft. 53,264 

Total 124,632,000 ft $460,214 



BOND CIRCULARS 433 

FINANCIAL STATEMENT 
Before issuance of bonds: 

ASSETS. 
Cash, accounts receivable, lumber, merchandise 

and other current and working assets $ 51,827.78 

Stumpage, Sabine Parish $460,214 

Stumpage, Jackson Parish 199,800 



$660,014.00 
Saw mill plant, railroad and logging equipment. 89,408.25 



$801,250.03 
LIABILITIES. 

Accounts and bills payable $154,014.58 

The Company owns about 16,000 acres of land in fee 
simple, valued for agricultural purposes at $80,000 after 
the timber is removed. This item is not included in above 
statement. 

PURPOSE OF BOND ISSUE. 

The authorized bond issue is $250,000, of which the 
proceeds of $150,000 outstanding will be used to pay bal- 
ance on timber purchased (included in liabilities) and re- 
tire floating indebtedness. Under careful restrictions of 
the Trust Deed the reserved bonds, $100,000, can be issued 
for the purchase of additional timber at the rate of $1.75 
per thousand feet of merchantable yellow pine. 

The basis of the loan on outstanding bonds is $1.22 per 
1,000 feet. If the reserved bonds are issued as provided in 
Trust Deed the basis of the loan for the full amount of 
bonds authorized would be only $1.37 per 1,000 feet — a very 
low rate for Southern timber. 

HISTORY AND OPERATION. 

The Wyatt Lumber Company, Limited, was organized in 
1903, since which time it has been continuously and profit- 
ably engaged in the manufacture of lumber at Wyatt, Louis- 
iana. In addition to the standing timber mortgaged the 
Company owns about 50,000,000 feet of yellow pine unen- 
cumbered at Wyatt, Jackson Parish, Louisiana. It is now 
cutting this timber. The saw mill plant has a capacity of 
15,000,000 feet per annum, and it is estimated this timber 
will be cut out in about three years, when the plant will 
be removed to Sabine Parish. Bonds maturing during this 
time will be paid from the proceeds of the unencumbered 
Wyatt timber, which will leave a gradually increasing mar- 



434 TIMBER BONDS 

gin of security for the later maturing bonds. The Com- 
pany's equipment includes a complete up-to-date saw mill, 
planing mill, dry kilns, etc., logging railroad and logging 
equipment, store building and employes' houses. 

SINKING FUND. 

The Trust Deed provides that before any timber is cut 
the Company must pay to the Trustee as a sinking fund for 
the redemption of bonds, $3.50 per thousand feet of pine 
and white oak, according to the timber estimates on file 
with the Trustee. After removal of timber the land may 
be released by the Trustee on payment of $3.50 per acre 
into the sinking fund. 

The sinking fund is sufficient to retire all the outstand- 
ing bonds when about one-third of the timber mortgaged 
has been cut. 

FIRE HAZARD. 

Timber located in the southern states has never been 
destroyed by fire. Absence of undergrowth and height of 
the trees render any serious fire damage impossible. 

EXAMINATION. 

Before purchasing this issue of bonds we made a thor- 
ough personal investigation of all the conditions on which 
the security depends. All titles to the property have been 
carefully examined and approved by competent attorneys, 
under whose supervision the mortgage was drawn and the 
bonds issued. 

Copies of trust deed, attorney's opinion, detailed timber 
estimates, and other data pertinent to the issue may be 
seen at our office. 



All statements herein are official, or are based on in- 
formation and data believed by us to be trustworthy and 
reliable, and, while not guaranteed, have been accepted and 
acted upon by us in the purchase and appraisal of the 
bonds and the property securing the same. 

Bonds are offered subject to prior sale. 

Bonds will be delivered where desired, express prepaid, 
payable with exchange. 

Telegrams may be sent at our expense. 

CHARLES M. SMITH & COMPANY, 

Bankers, 

First National Bank Bldg., Chicago, 111. 



BOND CIRCULARS 435 

EXHIBIT NO. 19. 

CLARK L. POOLE & CO., 
BANKERS, 
CHICAGO. 
GUARANTEED FIRST MORTGAGE TIMBER LAND 
BONDS. 
Secured by absolute First Mortgage on about NINETY MIL- 
LION feet of merchantable hardwood and pine timber 
standing on lands OWNED IN FEE SIMPLE, located 
in Botetourt County, Virginia, on the main line of the 
Norfolk & Western Railroad. The mortgage is also a 
first lien on a modern Saw Mill, with a capacity of 50,- 
000 feet per day, Railroad and equipment and logging 
equipment. We appraise the market value of these 
properties at $387,865, or over two and one-half 
times the amount of this bond issue. 
We own and offer, subject to prior sale: $150,000 First 
Mortgage 6 Per Cent Gold Bonds of the 

O. D. McHENRY LUMBER COMPANY 

OF ARCADIA, VIRGINIA. 

(P. O. Indian Rock, Virginia.) 

Capital and Surplus over $185,000. 

0. D. McHenry, President. 

Hon. John G. McHenry, Vice-President, Benton, Pa. 

1. W. Edgar, Secretary and Treasurer. 



Principal and interest GUARANTEED by endorsement on 
each bond by O. D. McHenry, President, and I. W. Ed- 
gar, Secretary and Treasurer. 



Dated March 1, 1910. Maturing in series each six months, 
September 1, 1910, to March 1, 1918. Authorized issue, 
$200,000. Present issue, $150,000. Escrow bonds, $50,- 
000. 
Bonds offered mature as follows: 
$10,000 September 1, 1910 $12,500 September 1, 1913 
10,000 March 1,1911 12,500 March 1,1914 

10,000 September 1, 1911 12,500 September 1, 1914 

10,000 March 1,1912 12,500 March 1,1915 

10,000 September 1, 1912 15,000 September 1, 1915 

10,000 March 1,1913 15,000 March 1,1916 

$10,000 September 1, 1916 



Principal and interest payable at Central Trust Com- 
pany of Illinois, Trustee, Chicago. 



436 TIMBER BONDS 

The proceeds of this bond issue will retire all out- 
standing indebtedness of the O. D. McHenry Lumber Com- 
pany, other than current obligations and provide them 
with ample working capital. 

PROPERTIES COVERED BY MORTGAGE. 
TIMBER. 

This mortgage to the Central Trust Company of Illinois, 
as Trustee, is a first lien on 20,100 acres of Botetourt 
County, Virginia, adjoining the main line of the Norfolk 
& Western Railroad, of which 

10,000 acres are virgin timber lands, 
6,000 acres partly cut-over timber lands, 
4,100 acres open lands. 

According to detail estimates made by our own timber 
estimator, Mr. W. E. Straight, a well-known and compe- 
tent timber estimator of twenty years' experience, these 
lands will cut tne following amounts of timber: 

White, Red and Chestnut Oak 24,850,000 feet 

White Pine .16,350,000 feet 

Chestnut, Poplar and other hardwood 48,190,000 feet 

Log scale 89,390,000 feet 

These properties are exceptionally located, being on the 
main line of the Norfolk & Western Railroad, only 160 
miles from Baltimore and the Central Eastern markets. 
The majority of mills shipping into this market are from 
400 to 600 miles distant. 

According to the audit of the books of the O. D. Mc- 
Henry Lumber Company as of June 30, 1910, made by Mar- 
wick, Mitchell & Company, chartered accountants, the O. 
D. McHenry Lumber Company at the present time is mak- 
ing an average net profit of $7.78 per thousand feet. This 
is on a basis of OVER SEVEN TIMES THE MAXIMUM 
INTEREST CHARGE ON THIS ISSUE, after deducting 
the Redemption Fund requirement of $3.00 per thousand 
feet. 

MILL PROPERTIES. 

The mortgage is also a first lien on a modern band mill 
with a daily capacity of 50,000 feet, well located and sub- 
stantially built, all timbers and line shafts resting on con- 
crete foundations. The mortgage also covers five miles of 
railroad connecting the company's timber with the mill. 



BOND CIRCULARS 437 

VALUE OF PROPERTIES. 

We appraise the market value of this timber at 

$3.50 per thousand feet, or $312,865 

We appraise the market value of the railroad and 

mill properties at 75,000 

A total valuation of all property covered by this- 

mortgage of $387,865 

Or more than two and one-half times amount of this 
bond issue. 

The company takes no account in their financial state- 
ment of the 20,100 acres of land owned in fee, which is 
estimated to be worth an average of over $5.00 per acre, or 
$100,500. Botetourt County, we are informed, is a well 
known apple producing county. 

REDEMPTION FUND. 

This mortgage requires a deposit of $3.00 per thousand 
feet every thirty days, log scale, for all timber cut, based 
upon estimates filed with the Trustee. Provisions of the 
mortgage covering this point are rigidly and carefully 
drawn. This deposit applies to the payment of the prin- 
cipal of the bonds only, and will operate to retire this en- 
tire bond issue before cutting 60 per cent of the timber 
covered by the mortgage. Should the amount deposited 
under this redemption fund exceed the amount maturing 
in any year, the Trustee is required to repurchase or call 
for redemption, at a premium of 103 and accrued interest, 
bonds of an amount sufficient to exhaust the surplus. In- 
terest on the bonds is payable out of the earnings of the 
company. 

CONDENSED BALANCE SHEET AS OF JUNE 30, 1910. 

Compiled by Marwick, Mitchell & Co., 

Chartered Accountants. 

ASSETS. 

Timber lands owned in fee simple (19,800 acres), 

logging and mill property, equipment, etc. .$297,332.82 

Inventories, accounts and notes receivable 28,531.41 

Cash at bankers 70,011.97 

Total $395,876.20 



438 TIMBER BONDS 



LIABILITIES. 



Capital stock authorized, $200,000.00; whereof 

issued $174,000.00 

First mortgage 6 per cent gold bonds 150,000.00 

Current liabilities — notes, accounts, etc 60,362.28 

Surplus 11,513.92 

Total $395,876.20 

New York, August 2, 1910. 
We have examined the account of the O. D. McHenry 
Lumber Company, Inc., as at June 30, 1910, and we cer- 
tify that, in our opinion, the foregoing Balance Sheet pre- 
sents a full and fair statement of the Company's financial 
position on that date as revealed by its books. 

MARWICK, MITCHELL & CO., 

Chartered Accountants. 

PURPOSE OF BOND ISSUE. 

This issue was made for the express purpose of retiring 
all outstanding indebtedness of the O. D. McHenry Lumber 
Company, other than current indebtedness, and will leave 
the Company with about $70,000 free working capital. 

The total issue is $200,000; the present issue is limited 
to $150,000; the remaining $50,000 may be issued only in 
part payment for standing merchantable timber located 
near or adjacent to the timber now owned by the company 
at the rate of $1.00 per thousand feet, titles to which are 
to be approved by our Counsel and based on estimates to 
be made in detail and certified to by our cruisers prior to 
the issuance and certification of such additional bonds. 

GUARANTEE. 

These bonds are unconditionally guaranteed, principal 
and interest, by written endorsement on each bond by Mr. 
O. D. McHenry and Mr. I. W. Edgar, who are recognized 
as thoroughly reliable and experienced hardwood lumber 
manufacturers. 

PERSONNEL. 

Mr. O. D. McHenry, President, has been a successful 
and conservative hardwood operator in Pennsylvania for 
over twenty years. 

Mr. I. W. Edgar, Secretary and Treasurer, has been as- 
sociated with Mr. O. D. McHenry for several years past. 

The Hon. John G. McHenry, Vice-President and a large 
stockholder of the O. D. McHenry Lumber Co., is a resident 
of Benton, Pennsylvania, and a congressmen from the dis- 



BOND CIRCULARS 439 

trict. Mr. McHenry is also a director in numerous banks 
and trust companies. 

FIRE HAZARD. 

Virgin timber located in the southern states is abso- 
lutely free from devastating fires. This statement is mere- 
ly a matter of record and will be verified by lumbermen 
and others familiar with southern timber. In this respect 
it differs entirely from northern stumpage. 

Any serious damage by fire is impossible, because there 
is no undergrowth in these forests to hold or carry a dam- 
aging fire and trees are long-bodied and free from limbs 
from twenty-five or thirty feet above the ground. This is 
one of the most important facts in connection with this 
security. 

TITLES AND MORTGAGES. 

The titles to the land and timber covered by this mort- 
gage have been examined and certified to by our counsel, 
Adams & Candee, of Chicago, under whose legal direction 
the bonds and mortgage were prepared. 

DATES OP PAYMENT. 
These bonds are issued in denominations of $1,000 and 
$500 each, and are due and payable each six months from 
September 1, 1910, to September 1, 1916 (see first page). 



Price of bonds, for long or short time, par and accrued 
interest, yielding six per cent. 



The above statements are based on information and 
data believed by us to be trustworthy and reliable, and 
while not guaranteed by us, have been accepted and acted 
upon by us in the purchase and appraisal of the bonds and 
the property securing the same. 

CLARK L. POOLE & CO., 

Bankers, 

Commercial National Bank Bldg, Chicago. 

EXHIBIT NO. 20. 

McCOY & COMPANY, 

105 South La Salle St., 

CHICAGO. 

We offer at par and accrued interest, subject to prior sale: 

$320,000 Six Per Cent First Mortgage Gold Bonds of 

the 

KRAUSE & MANAGAN LUMBER CO., LTD., 
Westlake, Louisiana. 



440 TIMBER BONDS 

Principal and interest guaranteed by R. Krause, Lake 
Charles, Louisiana; Wm. H. Managan, Westlake, Louis- 
iana. 



Principal and semi-annual interest payable at Interstate 
Trust & Banking Company, New Orleans, Trustee, or 
Continental National Bank, Chicago. 



Dated September 1, 1908, Coupon Bonds, $1,000 each, pay- 
able $20,000 semi-annually from March 1, 1910, to Sep- 
tember 1, 1917, inclusive. 
THESE BONDS ARE SECURED BY FIRST MORT- 
GAGE to the Interstate Trust & Banking Co., of New Or- 
leans, Trustee, upon 18,477 acres of compact, well-located 
virgin timber lands in Calcasieu Parish, Louisiana, owned 
in fee, estimated to bear 221,930,000 feet of merchantable 
long leaf and short leaf yellow pine timber, besides a con- 
siderably quantity of hard woods. The mortgage is also a 
first lien upon the saw mill and plant located at Westlake, 
Louisiana. The mortgage requires that the mill and equip- 
ment shall be fully insured for the benefit of the bond- 
holders. 

AMOUNT AND VALUE OP TIMBER. 

Careful detailed estimates of the timber have been 
made by Messrs. Lemieux Brothers & Co., of New Or- 
leans, Louisiana, a copy of whose report we will furnish 
on application and from which we quote as follows: 

Long Leaf Yellow Pine, 10 inches up 211,110,000 feet 

Short Leaf Yellow Pine, 10 inches up. .... .. 6,815,000 feet 

Yellow Pine, 8 inches to 10 inches 4,005,000 feet 

Hardwood 1,135,000 feet 

Total 223,065,000 feet 

Yellow pine timber of the character covered by this 
mortgage, may be conservatively appraised at $3.00 to $4.00 
per thousand feet. These bonds are issued upon a basis of 
$1.50 per thousand feet of merchantable yellow pine timber, 
hence the value of the pine timber alone is more than twice 
the amount of the bond issue, not including the value of 
other timber, the mill and plant at Westlake, and the per- 
sonal guarantee of payment of Mr. R. Krause and Mr. Wm. 
H. Managan. 

PAYMENT OF BONDS IS GUARANTEED uncondition- 



BOND CIRCULARS 441 

ally, both as to principal and interest, by endorsement on 
each bond by Messrs. R. Krause and Wm. H. Managan. 

EARNINGS. 

The Company's net earnings for the past ten years have 
averaged in excess of $75,000 per annum, after charging off 
the stumpage, as shown by the following statement taken 
from their books: 

Year. Sales. Shipments. Profits. 

1898 $278,448.17 26,181,370 feet $74,813.01 

1899 271,629.85 24,254,649 feet 71,805.62 

1900 250,733.54 19,347,432 feet 85.197.23 

1901 291,183.39 22,429,098 feet 94,804.03 

1902 261,880.74 18,661,796 feet 87,214.05 

1903 274,843.89 20,519,051 feet 89,929.03 

1904 244,434.12 18,868,472 feet 49,343.40 

1905 298,991.70 20,591,134 feet 72,495.41 

1906 231,702.21 13,198,523 feet 81,404.13 

1907 260,306.72 14,378,113 feet 50,098.19 

SINKING FUND. 

The mortgage, under careful restrictions, requires the 
deposit with the Trustee, in advance, of $3.00 for each one 
thousand feet of timber cut. This deposit must be made 
to cover the amount of timber found on each forty acres, 
according to the estimates of Lemieux Brothers & Co., be- 
fore such timber is cut. It is the intention not to cut any 
of the timber securing the bonds for five or six years, but 
to supply the mill with other timber owned by the Com- 
pany, and not covered by the mortgage. 

TITLES AND LEGALITY. 

The titles to the lands covered by the mortgage have 
been examined and approved by Messrs. Pujo, Moss & 
Sugar, Lake Charles, Louisiana; Messrs. Howe, Fenner, 
Spencer & Cocke, of New Orleans, and Mr. Samuel Adams, 
of Chicago, and the legality of the bonds, mortgage and 
guarantee have been approved by Messrs. Howe, Fenner, 
Spencer & Cocke and Mr. Samuel Adams. Copies of these 
opinions will be furnished upon request. 

FIRE HAZARD. 

Timber located in the Southern States has never been 
destroyed by fire. Absence of undergrowth and the height 
of the trees renders any serious fire damage impossible. 



442 TIMBER BONDS 

MATURITIES. 

$20,000 due March 1,1910 $20,000 due March 1,1914 

20,000 due September 1, 1910 20,000 due September 1, 1914 
20,000 due March 1,1911 20,000 due March 1,1915 

20,000 due September 1, 1911 20,000 due September 1, 1915 
20,000 due March 1,1912 20,000 due March 1,1916 

20,000 due September 1, 1912 20,000 due September 1, 1916 
20,000 due March 1,1913 20,000 due March 1,1917 

20,000 due September 1, 1913 20,000 due September 1, 1917 
Any or all of the bonds may be redeemed on Septem- 
ber 1st, 1911, or on any interest payment date thereafter, 
at a premium of 2 per cent and accrued interest, upon sixty 
days' notice. 

PRICE FOR ANY MATURITY, PAR AND ACCRUED 
INTEREST. 
All bonds offered by us are subject to sale, change of 
price or withdrawal. We use our best endeavors to care- 
fully examine the details connected with the bonds offered, 
and while we do not guarantee information and statements 
in our letters and circulars concerning securities, they are 
the expression of our belief, or are statements that have 
been made to us from what we consider reliable sources 
and upon which we have acted. We can furnish the writ- 
ten opinion of our attorney on each issue. Orders for 
bonds may be telegraphed at our expense. Bonds delivered 
to purchaser, express prepaid, payable in New York or Chi- 
cago exchange. 

McCOY & COMPANY, 
105 S. LaSalle St., Chicago. 

EXHIBIT NO. 21. 

Circular No. 711— August, 1910. 

PEABODY, HOUGHTELING & CO., 

105 South La Salle Street, 
CHICAGO. 

Established 1865. 

Cable Address: "Hought," Chicago. Codes Used: Lie- 
ber and A. B. C. 5th Edition. 

$200,000 First Mortgage 6 Per Cent Serial Gold Bonds of thi 

SOUTH ALABAMA LUMBER COMPANY. 
Dated August 1st, 1910. Payable in series as below. Re- 



BOND CIRCULARS 443 

deemable in the reverse of their numerical order on 
August 1st, 1911, or on Interest Dates thereafter at 
102% and Interest. Coupon Bonds of $500 and $1,000 
demominations, with privilege of registration as to 
principal. Principal and Semi-Annual Interest payable 
at the office of Peabody, Houghteling & Co., Chicago. 
First Trust & Savings Bank, Chicago, and Augustus S. 
Peabody, Trustees. 

MATURITIES. 
Amount. Term. Date Maturing. 

$ 6,000 1 year August 1, 1911 

6,500 1% years February 1,1912 

12,500 2 years August 1,1912 

12,500 2% years February 1,1913 

12,500 3 years August . 1, 1913 

12,500 zy 2 years February 1, 1914 

12,500 4 years August 1, 1914 

12,500 4V 2 years February 1,1915 

12,500 5 years August 1, 1915 

25,000 5% years February 1, 1916 

25,000 6 years August 1, 1916 

25,000 6% years February 1, 1917 

25,000 7 years August 1, 1917 

These bonds, which are issued for the purpose of re- 
tiring the floating indebtedness of the Company and for 
additional working capital, are secured by a CLOSED First 
Mortgage on approximately 10,000 acres of land, and ap- 
proximately 122,740,000 feet of timber. 

VALUATION. 

Based upon an examination of the Company's timber 
lands made in our behalf by the well known expert, Mr. 
J. P. Brayton, we value the security behind these bonds as 
follows: 

Land and Timber $638,680.00 

In addition to which the Company has ample working 
capital, and owns a valuable saw mill, logging equipment 
and railroad, upon which we have placed no specific valua- 
tion. 

SINKING FUND. 
Under the terms of the Mortgage, the Company agrees 
to pay into the First Trust & Savings Bank, Chicago, on or 
before the 15th day of every month, subject to the Trustees' 



444 TIMBER BONDS 

order, a sinking fund of $5.00 per thousand feet on all tim- 
ber cut from the land, under the Mortgage, during the pre- 
ceding calendar month. 

Any surplus left in the sinking fund at the end of any 
year may be used to retire the bonds in the reverse of 
their numerical order at 102% and interest. 

This sinking fund is sufficient to pay off the entire prin- 
cipal of these bonds from the exhaustion of less than one- 
third of the Company's timber. 

SECURITY. 

The security behind these bonds consists of timber lands 
in Mobile County, Alabama, about twenty miles in a direct 
line from the city of Mobile. These lands comprise: 

10,000 acres of land and timber owned in fee sim- 
ple. 
1,802 acres of timber owned in fee simple. 



Total 11,802 acres. 

These lands contain, according to the estimate of Mr. 
J. P. Brayton: 

72,520,000 feet of Pine. 

10,030,000 feet of Cypress. 

40,190,000 feet of Hardwood. 



Total. . .122,740,000 feet of merchantable timber. 

The timber lands are, for the most part, level and the 
timber is very good. 

These bonds are also secured by the Company's plant, 
which includes a Band Saw Mill, Logging Railway and 
Logging Outfit, in excellent condition and with a capacity 
of 45,000 feet per day. 

OPERATION. 

Because of the close proximity of the timber to the Mo- 
bile market, with railroad and water facilities, the ideal 
character of the land for economic logging and the quality 
of the timber, the Company's operations should be exceed- 
ingly profitable. 

In his report of June 3rd, 1910, Mr. J. P. Brayton esti- 
mates the cost of manufacture from the stump to the car, 
including depreciation and management, to be about $7.50 
per thousand feet for the Yellow Pine, and the cost of 
lumbering the Cypress, Gum and other Hardwood and man- 
ufacturing the same into lumber, including depreciation 
and management, at $10 per thousand feet. He considers 
$16 per thousand feet a fair average price for the Pine, $25 



BOND CIRCULARS 445 

per thousand feet for the Cypress and $14 per thousand feet 
for the Gum and other Hardwood. On this basis, the 
stumpage of 122,740,000 feet behind the total bond issue of 
$200,000 would produce the following results: 
72,520,000 feet of Pine at an average 
selling price of $16 f. o. 

b. cars „ $1,160,320 

Less cost of logging, manu- 
facturing and loading on 
cars, $7.50 543,900 $616,420 

10,030,000 feet of Cypress at an aver- 
age selling price of $25 f. 

o. b. cars $ 250,750 

Less cost of logging, manu- 
facturing and loading on 
cars, $10 100,300 150,450 

40,190,000 feet of Hardwood at an av- 
erage selling price of $14 

f. o. b. cars $ 562,660 

Less cost of logging, manu- 
facturing and loading on 
cars, $10 401,900 160,760 

Net amount available for the protec- 
tion of principal and interest of 
these bonds $927,630 

Total amount of principal and inter- 
est of these bonds $262,625 

MANAGEMENT AND OWNERSHIP. 

The stockholders of the South Alabama Lumber Com- 
pany are men of substantial means and large experience, 
and the management of the Company and its affairs are in 
conservative and thoroughly practical hands. The stock- 
holders have an actual cash investment of over $300,000 
behind these bonds. 

GUARANTEE. 

These bonds are unconditionally guaranteed jointly and 
severally both as to principal and interest by Mr. H. H. 
Wheless of Shreveport, Louisiana, and Mr. J. M. Patterson, 
of Mobile, Alabama, who are men of excellent standing in 
their community, with a reputation for responsibility, in- 
tegrity and absolute promptness in meeting their obliga- 



446 TIMBER BONDS 

tions. Their combined net worth, outside of their interest 
in this Company, is in excess of $650,000. 

We have investigated these properties thoroughly. The 
timber lands have been examined and reported on in de- 
tail by Mr. J. P. Brayton, one of the most experienced and 
best known experts in the country, as well as by our own 
timber expert. The Company's books have been audited 
by Messrs. Price, Waterhouse & Company, and the titles 
to the Company's property and all legal matters pertaining 
to this issue have been approved by Messrs. Stevens & 
Lyons of Mobile, Alabama. 



We recommend these bonds as a safe investment for the 
following reasons: 

First: The value of the security is over three times 
the amount of the issue. 

Second: The stockholders have an actual cash invest- 
ment of over $300,000 behind the bonds. 

Third: The timber securing these bonds is of unusually 
fine quality and so situated that it can be operated at a 
profit even under the most unfavorable market conditions. 

Fourth: The stockholders of the Company are finan- 
cially strong and are able to protect their investment, and 
the management is experienced, successful and thoroughly 
practical. 

Fifth: The bonds are guaranteed by individuals having 
a net worth OUTSIDE OF THIS PROPERTY of $650,000, 
over three times the amount of the bonds. 

The bonds will be ready for delivery about September 
1st and will be delivered at any bank desired, express pre- 
paid. 

Price, par and accrued interest. 

Telegraphic orders may be sent at our expense. 

PEABODY, HOUGHTELING & CO., 
105 S. LaSalle St., Chicago. 



EXHIBIT NO. 22. 

LYON, GARY & COMPANY, 

LUMBERMEN AND BANKERS. 

CHICAGO. 

$200,000.00 SOUTHERN TIMBER COMPANY 
Six Per Cent First Mortgage Serial Gold Bonds. 
Dated Nov. 17, 1910. Maturing semi-annually, May 15, 1911, 
to Nov. 15, 1913. 



BOND CIRCULARS • 447 

Redeemable at 103 and interest, in whole or in part, on 

any interest day, on ninety days' notice. 
Principal and interest payable in Chicago on May 15th and 

Nov. 15th. 
Coupon Bonds of $1,000 each; may be registered as to 

principal. Union Trust Company of Chicago and 

John K. Lyon, Trustees. 

MATURITIES. 

$33,000 May 15, 1911 33,000 Nov. 15, 1912 

33,000 Nov. 15, 1911 33,000 May 15, 1913 

33,000 May 15, 1912 35,000 Nov. 15, 1913 

Principal and interest guaranteed by endorsement by 
Ernest V. Dunlevie of Buffalo, New York. 

The security for the bonds may be summarized as fol- 
lows: 

1. First Mortgage lien on 9,199 acres of land owned in 
fee and on the timber on 11,002 acres held under leases, 
none of which expires until subsequent to the maturity of 
all of the bonds of this issue, all located in Liberty County, 
Georgia. 

2. Upon the 20,201 acres there are 140,000,000 feet of 
standing and living yellow pine timber. 

3. The timber is conservatively valued at $3.50 per 
thousand feet or a total valuation of approximately $500,- 
000.00 exclusive of the land. 

4. The Mortgage also covers a railroad and logging 
equipment which has already cost in excess of $90,000.00. 

5. As additional security the Timber Company has as- 
signed its contract with the Byers-AUen Lumber Co. of Al- 
lenhurst, Georgia, by the terms of which the said Lumber 
Company agrees to take from the Timber Company a mini- 
mum of 12,000,000 feet per annum and pay therefor when 
delivered at its mills $8.50 per thousand. 

6. The performance of this contract by the Byers-Allen 
Lumber Co. is guaranteed by its President, Mr. J. Henry 
Cochran of Williamsport, Penn., a lumberman reputed to 
be worth many times the amount of this bond issue. 

7. From the statements of the Timber Company it is 
shown that logs are now being delivered at the mill of the 
Byers-Allen Lumber Co. at Allenhurst at a cost of less than 
$3.00 per thousand, which would leave a margin for the 
Timber Company in excess of $5.50 per thousand feet. 

8. The Southern Timber Company's operations are un- 
der the personal charge of Mr. Ernest V. Dunlevie, the 
owner, a successful and experienced lumberman. 



448 TIMBER BONDS 

9. The loan is at the rate of $1.40 per thousand on the 
timber. 

10. Under the trust deed the Timber Company is re- 
quired to pay to the trustee $5.00 per thousand feet for tim- 
ber desired to be cut; from this provision it will be seen 
that the whole loan will be paid before one-third of the 
timber pleged is cut. 

11. The guarantor, Mr. E. V. Dunlevie is reputed to be 
worth, outside of this property, considerably more than the 
total amount of this loan. 

12. Frequent inspection of the property is provided for 
at the expense of the borrower. 

13. It is well known that yellow pine timber of the 
South has not suffered from fire hazard. 

14. The valuations, titles and legal matters have been 
passed on by competent parties; the timber and its value 
by our own cruisers and the titles and legal matters by W. 
W. Gurley, of Chicago, and E. E. Barthell, of Nashville, 
Tenn. 

15. The whole property lies within thirty-five miles of 
Savannah, Ga., and the sea coast, and has two trunk lines 
adjacent, one passing on each side and within a few miles 
of the property. 

Map showing the exact location, copy of the Mortgage or 
Deed of Trust, and detailed statement of the cruise may be 
had on request. 

All statements made in this circular are based upon in- 
formation which we regard as reliable and upon which we 
acted in the purchase and valuation of the securities of- 
fered; such offerings being made subject to prior sale. 

LYON, GARY & COMPANY, 

204 Dearborn St.,. 

Chicago. 



CHAPTER XIII. 

SINKING FUND. 

Most bond dealers at present have no stand- 
ard method of arriving at the charge per thou- 
sand feet that must go to the sinking fund to 
retire the semi-annual serials. They usually 
drive the hardest possible bargain and charge 
the timberman all the traffic will bear. This 
method is unsound and entirely un-scientific. 
There are some issues outstanding, carrying 
such a heavy sinking fund charge that unless 
the market for lumber improves they will have 
to default in that particular condition. 

The lumber operator has no right to draw 
big dividends out of the business while his 
debts are heavy. Neither should the bond 
house break him by forcing the borrower under 
a trust deed to pay excessive amounts to the 
sinking fund. The stumpage owner goes to 
the bond house to be financed, to be relieved 
of pressing debts and liabilities. He is not 
versed in the science of money and to a certain 
extent places himself at the mercy of the bond 
buyer. If the bond buyer understands lumber- 
ing and logging the timberman is safe in doing 
this. If the bond buyer weighs down the oper- 
ator with excessive sinking fund charges the 
timberman is worse off than he was prior to 
bonding his property. Before floating the bond 

449 



450 TIMBER BONDS 

issue, he could, at a crisis, sell a piece of tim- 
ber or make some other turn. After floating 
a bond issue the entire property is mortgaged 
and he is helpless unless the bond house has 
provided him with enough money, under a lib- 
eral mortgage, to permit him to operate with 
safety and economy. The bond house that 
makes the sinking fund charges all the traffic 
will bear is not financing the borrower, but is 
starting him on the high road to default, fore- 
closure and bankruptcy. 

The soundest method of figuring sinking 
funds now employed is that used by a large 
house that is fully conversant with logging and 
milling operations. This house knows the 
cost of each kind of lumber on cars in every 
locality and is conversant with the markets and 
the margin the operator has between cost on 
cars and selling price. They make allowances 
for all contingencies and base their sinking 
fund charges accordingly. This system is safe 
for all concerned when used by the above house, 
but in the hands of a bond house that is not 
fully in touch with the various phases of the 
timber business it is positively dangerous. The 
writer believes there should be a universal 
sinking fund rule ; safe, and fair alike for both 
borrower and lender. 

The timberman can now borrow in the form 
of a bond issue from one-third to one-half the 
value of his holdings. If his timber is worth 
four dollars a thousand on the stump he can 



SINKING FUND 451 

borrow about two dollars a thousand. Under 
the present practice the sinking fund on this 
loan is any figure the bond house estimates. 
The proper and scientific figure to be paid to 
the sinking fund on such a loan is the value of 
the stumpage, — four dollars per thousand. 
This will pay off the loan when half the timber 
is cut. In like manner when the loan is one- 
third the value of the timber and the sinking 
fund the full value of the timber the loan will 
be paid off while two-thirds of the stumpage is 
standing. 

The sinking fund payments up to the present 
time have always exceeded the value of the 
timber. The true sinking fund is the value at 
which the timber is appraised for the loan and 
on which the percentage to be loaned is based. 
This gives the lender full protection and the 
timber owner a fair deal. 



CHAPTEE XIV. 

FIRE RISK. 

As the chief argument against the security 
behind a bond issue, the enemies of timber 
investments advance the danger from loss by 
forest fire. In order to fully understand this 
question it is necessary to know there are four 
kinds of forest fire, a ground fire, a surface fire, 
a stand fire and a crown fire. 

A ground fire burns along the floor of the 
forest, creeping through its carpet and creat- 
ing immense volumes of thick smoke, which 
conveys the idea to the observer that the entire 
forest is burning. These clouds of smoke get 
so dense that the sun appears in the heavens 
as an immense disc of fire. The eyes become 
inflamed and the throat and nose irritated. The 
great majority of forest fires are in this class. 

The ground fire is practically harmless, but 
unfortunately for the timber owner, it does 
create a lot of smoke, and this smoke furnishes 
the politician— ranger and the newspaper 
space writer with campaign ammunition. The 
former for obvious reasons must have fires to 
cope with. The larger and more numerous the 
fires the more secure the fire fighters position, 
and the heavier the appropriations both state 
and national. The space writer is looking for 
anything that makes copy and is glad to use 

452 



FIRE RISK 453 

the lurid material his friend the ranger fur- 
nishes him. 

A surface fire runs higher up than the 
ground fire. It burns through the under- 
growth. A surface fire does little damage un- 
less it spreads and becomes a stand fire. 

A stand fire is the really destructive element 
to a forest. It burns through the bark of the 
trees and causes their death. On the Pacific 
Coast, on the west side of the Cascade and 
Sierra mountains, fire killed timber stands in- 
definitely in some situations and makes per- 
fect lumber. Some timber owners like to see 
a fire go through their stumpage as it cleans 
out the underbrush, makes the timber more ac- 
cessible, the cost of building roads very light 
and reduces the logging expense considerably. 

A crown fire burns in the crowns of the trees ; 
it is very rare and as spectacular as unusual. 

The loan value of timber is greatly reduced 
by the magnifying of the fire risk. The people 
who circulate the overdrawn reports of losses 
do not realize how seriously they injure tim- 
ber owners and the wrong they work on stump- 
age prices. There are sections of the country 
where it is almost impossible to borrow money 
on timberland on account of the supposed fire 
risk The reports of fire losses sent from the 
Pacific Coast during the summer and fall of 
1910 created a feeling of fear about that part 
of the country amongst bankers and bond 
dealers. 



454 TIMBER BONDS 

Some of them will not handle Pacific Coast 
timber bonds on account of their belief in the 
truth of these reports. There is a fire risk in 
the Pacific Northwest in timber located East 
of the Cascade Mountains. But even there, 
the percentage of actual loss is small. West 
of the Cascades and in the Coast Eange the 
fire risk is practically non-existant. In Califor- 
nia, it is a well known fact that there is no 
fire risk in Eedwood forests. Eedwood trees 
cannot be burned. 

In the Southern pine forests, there is no 
fire risk in round timber. There is a small 
fire risk in boxed timber if the ground is not 
raked and taken care of. Cypress is positively 
immune from fire and from that point of view, 
is truly the wood eternal. Hardwood carries 
no fire risk. The destructive fires have oc- 
curred in the northern forests, and in the lake 
states. These forests are practically cut out 
and do nqt come on the bond market. 

Any person who wants to ascertain the ac- 
tual fire loss in any particular section can do 
so by writing the timber owners and operators. 
After reading the press accounts about losses 
running into millions and then comparing them 
with the actual figures the investigator will re- 
alize how much reliance to place in the publish- 
ed statements. 

If the figures published by interested parties 
during the last ten years as to the amount of 
timber burned were correct, all the known 



FIRE RISK 465 

stumpage in North America would have been 
totally destroyed several times. The fire risk 
is highly and unjustly exaggerated. 



CHAPTEE XV. 

LOAN VALUE. 

Every tract of timber has its own individu- 
ality, its distinct characteristics and its specific 
value either as a going enterprise, a reserve 
supply, an investment or a speculative holding. 

Timber in certain sections of the country is 
worth more than timber in other sections. The 
locations of different tracts in the same section 
alter their value. Certain kinds of timber are 
more valuable than other kinds. Difference in 
size varies the value of the same kind. 

Timber that is close to transportation is 
more valuable than remote stumpage. Tim- 
ber that grows on good logging ground is more 
valuable than that which stands on rough 
ground. Timber tributary to deep water and 
railroads is more valuable than that which has 
only one outlet. Green and growing timber is 
worth more than trees that have reached ma- 
turity. Trees that have just reached maturity 
are more valuable than those which are over- 
ripe. 

The worth of the land on which the timber 
stands is not now figured by bond dealers when 
estimating the amount of money to loan on a 
given timber property. This land is usually 
valuable for agricultural purposes, and is often 
very desirable fdr special uses. The exact 

456 



LOAN VALUE 457 

price of cut over land depends on its location, 
the nature of the soil and climate, the uses to 
which the land is adaptable, the nearness to a 
market for agricultural and garden products 
and the industry and thrift of the neighboring 
population. The land is surely a sound asset 
and should be considered. 

In the South cut over land may be used for 
growing sugar cane, corn, cotton, rice, farm 
products or another crop of timber, depending 
on the climate and nature of the soil. The 
South must produce all the cotton used in 
America and it is the only part of the country 
where rice and cane can be grown. The value 
of cut over land in the South is enormous, and 
must be borne in mind by bond buyers. In 
many cases the land alone would more than 
pay the bond issues on the property and leave 
the timber, logging equipment, railroads and 
mills as additional security A southern tim- 
ber bond is among the safest forms of invest- 
ment that can be found 

Humanity must be fed and housed. Timber 
and cotton are the great shelter crops of 
America. The land that now grows timber and 
when logged off will grow cotton, cane, rice 
or corn, is surely the soundest security in the 
world. 

In floating bond issues at present the bond 
dealer will loan the timberman from thirty to 
fifty per cent of the value of his stumpage and 
make the operator include land, logging equip- 



\ 



458 TIMBER BONDS 

ment, railroads and mills in the mortgage as 
further secnrity This basis is fair enough for 
some sections and operations, but on the whole 
it is too low. The timberman who has a well 
located property, and whose operations will 
show a clean record of profits for several years 
last past, should be able to borrow about sev- 
enty-five per cent of the value of his timber 
owned in fee simple, and in addition, about fifty 
per cent of the value of his fixed improvements, 
such as railroads and mills. 



CHAPTEE XVI. 

TECHNICAL TEEMS. 

In handling Timber Bonds, the Bond Dealer 
comes in close contact with the practical Log- 
ger and Millman, and unless he has made a 
specialty of timber bonds, he is often at a loss 
to follow the conversation of the lumberman. 
This inability to interpret the language of the 
industry has caused the failure of many bond 
negotiations for issues which were perfectly 
sound. The only reason for the non-production 
of these issues is the fact that the parties on 
either side of the transaction did not under- 
stand the technical expressions of the other 
well enough to feel at home and trade with con- 
fidence. After a conference with the practical 
logger or millman, the bond buyer feels he is 
getting beyond his depth, and while the busi- 
ness is attractive, he is afraid to venture where 
he does not clearly understand the ground, 
when in reality all he needs is a text book such 
as he can find on almost any other subject ex- 
cept timber bonds. 

The trade words and terms keep cropping 
out in letters, reports and newspaper articles 
until the bond dealer gets the idea that the 
timber bond is to be originated only by spe- 
cialists and brought out exclusively by the un- 
derwriter who makes a business of creating 

459 



460 TIMBER BONDS 

such issues. The underwriter gives good serv- 
ice and makes it more than worth his profit 
to the dealer to buy through him. The under- 
writer knows stumpage values thoroughly, 
watches the lumber markets, knows the move- 
ments of the timber trade, keeps in close touch 
with the entire business, and the timber bond 
issues he offers are always the choicest. No 
bond dealer, however, should be entirely de- 
pendent on the underwriter. He should know 
the timber situation well enough to bring out 
his own timber bond issues when he so de- 
sires. 

In a recent conversation with a bond seller 
who disposes of a round quantity of timber 
bonds each year, I was informed that he never 
originated his own issues because he knew 
nothing about the necessary proceedings, and 
could find no book on the subject. He told 
me he sent the timbermen, who came to him 
to negotiate loans, to the dealers he bought his 
bonds from and to whom he paid a handsome 
profit for their work of creating the bonds. I 
asked him why he did not buy through an un- 
derwriter, and was surprised to learn that he 
did not feel sufficiently confident even to do 
this. He would rather have some other house 
buy from the Underwriter and then in turn buy 
from it. 

Such men lose business because they cannot 
train their salesmen thoroughly in the handling 
of this class of paper, and are not able to talk 



TECHNICAL TERMS 461 

convincingly about the particular issue they 
are offering. The timber bond is a very at- 
tractive security, pays a good rate of inter- 
est and is in great demand, but competition 
gives the sales to the man who can talk in an 
able manner and thus satisfy the buyer that 
his is the most desirable issue for sale at the 
moment. 

There is nothing more technical or difficult 
about a timber bond than about a railroad bond 
or a hydro-electric bond or an industrial bond. 
The man who will devote a little study to in- 
vestigating timber securities will grow to like 
them better all the time and soon realize they 
are as simple as any other bond. Timber bonds 
have been looked on with distrust by the loan 
officers and credit departments of banks and 
there are some banks that will not take them as 
collateral. This is because the officers are not 
familiar with these securities and have had 
no way of learning the full details and history 
of a timber bond. The reports and data they 
see are full of terms they do not understand 
and naturally they avoid the use of such paper 
as security for loans when they can place their 
money on collateral they know thoroughly or 
can learn all about. To overcome these obsta- 
cles of technical terms and place the timber 
bond in the high position it should occupy, a 
chapter of definitions has been compiled for 
this book. 

There is a large and growing market for 



462 TIMBER BONDS 

Timber Bonds amongst wealthy stumpage own- 
ers, retired loggers, millmen and others who 
have made their money in timber or allied in- 
dustries. These men talk stumpage and lum- 
ber from a practical point of view, and the tim- 
ber bond salesman who cannot comfortably 
discuss his wares in their language is not like- 
ly to increase the business of his house with 
them. The timber bond salesman should be 
thoroughly familiar with the every day terms 
and technical phrases of the industry and be 
able to converse freely with the practical logger 
or millman. 

Heretofore it has been almost impossible for 
the bond salesman to equip himself with the 
necessary knowledge owing to the lack of pub- 
lished information on the subject. By studying 
the definitions in the next chapter the bond 
salesman can fit himself to meet any timber 
owner, logger or millman, and discuss bonds, 
timber and operations with ease and confi- 
dence. 

The writer has endeavored to make these 
terms conform to the exact language of the 
United States Bureau of Forestry and The So- 
ciety of American Foresters. Eeaders wish- 
ing to continue their investigations along tim- 
ber subjects are referred to bulletin number 
sixty-one, Bureau of Forestry, which has been 
used as a text book for the following chapter, 
to the "History of the Lumber Industry' ' and 
"The Curiosity Shop" published by the 



TECHNICAL TERMS 463 

American Lumberman, Chicago, "The Eco- 
nomics of Forestry' ' by B. E. Fernow, to the 
works of George B. Sudworth, Dendrologist 
of the Bureau of Forestry, Washington, D. 

C, the works of Overton W. Price, U. S. For- 
est Service, Washington, D. C, and to the bul- 
letins of the Bureau of Forestry, Washington, 

D. C. 



CHAPTER XVII. 

WORDS AND PHRASES. 

Absolute Forest Land. Land fit only for forest growth. 

Accident Yield. Trees which are cut on account of ac- 
cident, as, for example, damage by wind, snow, insects 
or fire. 

Accretion. Increase in diameter or height; distinguished 
from increment, increase in volume. 

Accretion Borer. An instrument for determining the 
growth in diameter of standing trees. It consists of a 
hollow auger, which when bored into a tree, extracts 
a section showing the annual rings. 

Accretion Thinning. A thinning made specifically to in- 
crease the rate of growth in diameter of the trees 
which are left standing. See thinning. 

Actual Merchantable Length. See used length. 

Actual Merchantable Volume. See used volume. 

Advance Growth. Young trees which have sprung up 
in accidental openings in the forest, or under the 
forest cover before reproduction cuttings are begun. 
See volunteer growth. 

After Growth. Young trees which have sprung up as 
the result of reproduction cuttings. 

Age Class. All trees in a stand whose ages are within 
a given limit. 

Alder Grab. The stem of an alder, or other small tree, 
which is bent over and plugged into a hole bored in 
a boom stick, or secured in some other way, to hold 
a boom of logs inshore. 

Alligator. 1. A boat used in handling floating logs. 
It can be moved overland from one body of water to 
another by its own power, usually applied through 
drum and cable. 2. A device, often made from the 
fork of a tree, on which the front end of a log is 
placed to facilitate skidding on swampy ground. 

Anchor Line. A line attached to a small buoy and to 
one fluke of an anchor used in towing a raft of logs. 
It is employed to free the anchor when fast to rocks 
or snags. 

Annual Ring. The layer of wood produced by the di- 
ameter growth of a tree in one year, as seen on a 
cross section. See false ring. 

Apron. 1. A platform projecting down stream from 
the sluiceway of a dam to launch well into the stream 
464 



WORDS AND PHRASES 465 

logs which pass through the sluiceway. 2. A plat- 
form built of timbers at the foot of a slide, which 
guides in the desired direction logs leaving the slide. 

Ark. See Wanigan. 

Aspect. The direction toward which a slope faces. The 
eight main points of the compass, N., N.E., E., S.E., 
S., S.W., W., N.W., are distinguished in forest descrip- 
tion. 

Back Fire. A fire started purposely some distance ahead 
of a fire which is to be fought. The back fire is in- 
tended to burn only against the wind, so that when the 
two fires meet, both must go out for lack of fuel. 

Back Line. See haul back. 

Ballhooter. One who rolls logs down a hillside. 

Bank. 1. See Landing. 2. The logs cut or skidded 
in one day above the required amount and held over 
by the saw crew or skidders, to be reported when the 
required daily number is not reached. 

Banking Ground. See landing. 

Barker. One who peels bark in gathering tanbark. A 
peeler or spudder. 

Bark Blazer. See scratcher. 

Bark Gouge. See scratcher. 

Barking Iron. See spud. 

Bark Mark. A symbol chopped into the side of a log 
to indicate its ownership; when used with the end 
mark, it serves as an additional means of identi- 
fication. 

Bark Marker. One who cuts the bark mark on logs. 

Barn Boss. One who has charge of the stables in a 
logging camp. 

Basal Area. The area of a cross section of a tree, or 
the sum of such areas. 

Batten. A log less than eleven inches in diameter at 
the small end. 

Battery. Two or more donkey engines for dragging 
logs, set at intervals on a long skid road. 

Beaver. See swamper. 

Becket. A large hook used in loading logs on cars by 
means of tackle. 

Bicycle. A traveling block, used on a cable in steam 
skidding. 

Bigness Scale. See full scale. 

Big Wheels. See logging wheels. 

Binder. A springy pole used to tighten a binding chain. 

Binding Chain. A chain used to bind together a load 
of logs. 



466 TIMBER BONDS 

Binding Logs. Logs placed on the top of the chain bind- 
ing a load, in order to take up the slack. 

Birl. To cause a floating log to rotate rapidly by tread- 
ing- upon it. 

Bitch Chain. A short, heavy chain with hook and ring, 
used to fasten the lower end of a gin pole to a sled 
or car when loading logs. 

Blank. An opening in the forest where, from any cause, 
very few or no trees are growing. 

Blaze. To mark, by cutting into trees, the course of a 
boundary, road, trail, or the like. 

Block. See brail. 

Blow Down. See windfall. 

Blue Jay. See road monkey. 

Bluing. The result of fungus attack, which turns the 
sapwood of certain trees blue. 

Board Foot. The contents of a board one foot square 
and one inch thick. The common unit of measure 
for logs and lumber in the United States. 

Board Measure. The standard of lumber measurement, 
the unit of which is the board foot. 

Board Rule. A graduated stick for determining the con- 
tents of boards. The number of board feet in boards 
of given widths and lengths is shown upon the stick. 

Board Scale. See board measure. 

Bob. See dray. 

Bobber. See deadhead. 

Bob Logs. To transport logs on a bob or dray. 

Body Wood. Cord wood cut from those portions of the 
stems of trees which are clear of branches. 

Bole. See stem. 

Bolster. See bunk. 

Boom. Logs or timbers fastened together end to end 
and used to hold floating logs. The term sometimes 
includes the logs inclosed, as a boom of logs. 

Boomage. Toll for use of a boom. 

Boom Buoy. See boom stay. 

Boom Chain. A short chain which fastens boom sticks 
end to end. 

Boom Company. A corporation engaged in handling 
floating logs, and owning booms and booming privi- 
leges. 

Boom Pin. A wooden plug used to fasten to boom sticks 
the chain, rope or withe which holds them together. 

Boom Rat. One who works on a boom. 

Boom Stay. A heavy weight used to anchor booms in 
deep water; its position is indicated by a pole or 
float attached to it. 



WORDS AND PHRASES 467 

Boom Stick. A timber which forms part of a boom. 

Bottle Butted. See swell butted. 

Bottom Sill. See mudsill. 

Brail. A section of a log raft, six of which make an 
average tow. 

Brake Sled. A logging sled so constructed that, when 
the pole team holds back, a heavy iron on the side of 
each runner of the forward sled is forced into the 
roadbed. 

Brand. See mark. 

Break Out. 1. To start a sled whose runners are 
frozen to the ground. 2. To open a logging road 
after heavy snowfall. 

Breasthigh. At or having a height of 4% feet above 
the ground. 

Breastwork Log. See fender skid. 

Briar. A crosscut saw. 

Bridle. A device for controlling the speed of logs on 
a skid road. It consists of a short rope with two 
hooks at one end, which are driven into the first log 
of the turn; at the other end is a clamp which runs 
over the cable. 

Bridle Man. One who follows a turn of logs down a 
skid road and tends to the "bridle." 

Broadleaf. See hardwood. 

Brow Skid. The chief beam in a frame to which tackle 
for loading logs on cars is fastened. , 

Brush a Road. To cover with brush the mud holes and 
swampy places in a logging road, to make it solid. 

Brush Snow Fence. A snowbreak to protect a logging 
road; used most commonly on wide marshes. It con- 
sists of brush which is set upright in the ground be- 
fore it freezes. 

Brutting Crew. A crew which rolls logs down slopes 
too steep for teams. 

Buck. 1. To saw felled trees into logs. 2. To bring 
or carry, as to buck water or wood. 

Bucker. 1. One who saws felled trees into logs. A 
cross cutter. 2. One who brings or carries. 

Buckwheat. See hang up. 

Buckwheater. A novice at lumbering. 

Bull Chain. 1. A very heavy chain, to which a number 
of short chains, with hooks on one end and dogs on 
the other, are attached. It is used to draw logs from 
the mill pond up the gang way. 2. See jack chain. 

Bull Cook. See chore boy. 

Bull Donkey. A large donkey engine which, by drum 



468 TIMBER BONDS 

and cable, drags logs from the place where they are 

yarded to a landing. 
Bully. A common name for the foreman or boss of a 

logging camp. 
Bummer. A small truck with two low wheels and a 

long pole, used in skidding logs. 
Bunch Load. To encircle several logs with a chain and 

load them at once, by steam or horse power. 
Bunch Logs. To collect logs in one place for loading. 
Bunk. 1. The heavy timber upon which the logs rest 

on a logging sled. 2. The cross beam on a log car 

or truck. 3. A log car or truck. 
Bunk Chain. See toggle chain. 
Bunk Hook. The hook attached to the end of the bunk 

on a logging car, which may be raised to hold the 

logs in place or lowered to release them. 
Bunk Load. A load of logs not over one log deep; one 

in which every logs rests on the bunks. 
Bunk Spikes. Sharp spikes set upright in the bunks 

of a logging sled to hold the logs in place. 
Burn. An area over which fire has run to the noticeable 

injury of the forest. 
Bush a Road. To mark the route of a logging road 

across a marsh or the ice by setting up bushes. 
Butt. The base of a tree, or the big end of a log. 
Butt Cut. 1. The first log above the stump. 2. In 

gathering tanbark the section of the bark taken from 

the butt of a tree before felling it for further peeling. 
Butt Hook. The hook by which the cable is attached 

to the tackle on the logs. 
Butt Log. See butt cut. 
Butt Off. 1. To cut a piece from the end of a log on 

account of a defect. 2. To square the end of a log. 
Buttress. A wall or abutment built along a stream to 

prevent the logs in a drive from cutting the bank 

or jamming. 
Butt Team. In a logging team of four or more, the 

pair nearest the load. 
Caliper. An instrument for measuring the diameter of 

trees or logs, usually consisting of a graduated beam 

to which is attached one fixed and one sliding arm. 
Camp Inspector. A lazy lumberjack, who goes from one 

logging camp to another, working only a short time 

in each. 
Cannon a Log. In loading logs by steam or horse power, 

to send up a log so that it swings crosswise, instead 

of parallel to the load. 
Cant Dog. See cant hook. 



WORDS AND PHRASES 469 

Cant Hook. A tool like a peavey, but having a toe ring 
and lip at the end instead of a pike. 

Cap. A cone of sheet iron or steel, with a hole in the 
end through which a chain passes, which is fitted 
over the end of a log before snaking it, to prevent 
catching on stumps, roots, or other obstacles in steam 
skidding. 

Catamaran. A small raft carrying a windlass and grap- 
ple, used to recover sunken logs. 

Catch Boom. A boom fastened across stream to catch 
and hold floating logs. 

Catface. A partly healed over fire scar on the stem of a 
tree. 

Catpiece. A small stick in which holes are made at 
regular intervals, placed on the top of uprights firmly 
set in floating booms. The uprights are fitted to enter 
the holes in the catpiece, so as to narrow or widen 
the space between the booms at the entrance to a 
sluiceway or sorting jack. The catpiece is held by 
the uprights high enough above water to allow logs 
to float freely under it. 

Cattynian. An expert river driver. 

Center Jam. A jam formed on an obstacle in the middle 
of a stream, and which does not reach either shore. 

Chain Grapples. See grapples. 

Chain Tender. See sled tender. 

Check. A longitudinal crack in timber caused by too 
rapid seasoning. 

Cheese Block. See chock block. 

Chock Block. A small wedge or block used to prevent 
a log from rolling. 

Choker. A noose of wire rope by which a log is dragged. 

Choker Man. The member of a yarding crew who 
fastens the choker on the logs. 

Chopper. See faller. 

Chore Boy. One who cleans up the sleeping quarters 
and stables in a logging camp, cuts firewood, builds 
fires and carries water. 

Chunk. To clear the ground with engine or horses, of 
obstructions which can not be removed by hand. 

Chunk Up. To collect and pile for burning the slash left 
after logging. 

Churn Butted. See swell butted. 

Chute. See slide. 

Clean Cutting. 1. The cutting of the entire stand. 
2. An area upon which the entire stand has been 
cut. 

Clean Cutting Method. A method of conservative lum- 



470 TIMBER BONDS 

bering in which the entire stand is cut at one time and 
reproduction is secured by sowing or planting. See 
forest management, 

Cleaning. A thinning made in a stand which has not 
reached the small-pole stage. Its main object is to re- 
move trees of undesirable form and species. See 
thinning. 

Clear Length. In silvics that portion of the stem of 
a tree free from branches. In forest measurements 
the meaning of the term varies with the species meas- 
ured and the purpose of the measurements. For ex- 
ample, clear length is in some cases used to designate 
that portion of the stem entirely free from branches; 
in others, that portion free from dead branches, or 
from growing branches of a given size. 

Closed. See crown density. 

Coal Off. To cut a forest clean for charcoal wood. 

Commissary. A general store for supplying lumbermen. 

Conk. 1. The decay in the wood of trees caused by 
a fungus. 2. The visible fruiting organ of a tree 
fungus. 

Conky. Affected by conk. 

Conservative Lumbering. Practical forestry; any meth- 
od of lumbering which perpetuates the forest by use. 

Cook Camp. The building used as kitchen and dining 
room in a logging camp. 

Cookee. Assistant cook and dishwasher in a logging 
camp. 

Cook Shanty. See cook camp. 

Cook House. See cook camp. 

Coppice. See sprout. 

Corkscrew. A geared locomotive. 

Corner Binds. Pour stout chains, used on logging sleds, 
to bind the two outside logs of the lower tier to the 
bunks, and thus gives a firm bottom to the load. 

Corner Man. In building a camp or barn of logs, one 
who notches the logs so that they will fit closely and 
make a square corner. 

Coupling grab. See grapples. 

Crab. A small raft bearing a windlass and anchor 
used to move log rafts up stream or across a lake. 

Cradle. A framework of timbers in which ocean going 
rafts of logs are built. 

Cradle Knolls. Small knolls which require grading in 
the construction of logging roads. 

Crazy Chain. The short chain used to hold up that 
tongue of a sprinkler sled which is not in use% 



WORDS AND PHRASES 471 

Crib. Specifically, a raft of logs; loosely applied to a 
boom of logs. 

Crib Logs. To surround floating logs with a boom and 
draw them by a windlass on a raft, or to tow them 
with a steamboat. 

Cross Chains. Chains connecting the front and rear 
sleds of a logging sled. 

Cross Cutter. See bueker. 

Cross Haul. 1. The cleared space in which a team 
moves when cross hauling. 2. To load cars or sleds 
with logs by horse power and crotch or loading chain. 

Crotch. To cut notches on opposite sides of a log near 
the end, into which dogs are fastened. 

Crotch Chain. A tackle for loading logs on sleds, cars, 
or skidways by cross hauling. 

Crotch Tongue. Two pieces of wood, in the form of a 
V, joining the front and rear sleds of a logging sled. 

Crown. In silvics, the upper part of a tree, including 
the living branches with their foliage. In forest 
measurements the use of the term varies with the kind 
of tree and the purpose of the measurements. For 
example, crown may be used to designate the whole 
leaf and branch system or that portion of it above a 
dead or a growing branch of a given size^ In tree 
description the crown is described as long* or short, 
broad or narrow, compact or ragged, conical or flat. 

Crown Class. All trees in a stand occupying a similar 
position in the crown cover. Dominant, intermediate, 
overtopped, and suppressed trees each constitute a 
crown class. 

Crown Cover. The canopy formed by the crowns of all 
the trees in a forest, or, in an irregular forest, by the 
crowns of all trees in a special crown class. 

Crown Density. The density of the crowns of the trees 
in a forest; it is usually measured by the extent to 
which the ground is shaded. The degrees of crown 
density in a forest are expressed in the following 
terms: Closed. When the crowns form an uninter- 
rupted cover and permit little or no sunlight to reach 
the ground. Dense. When three-fourths or more of 
the ground is shaded. Thin. When three-fourths to one- 
half of the ground is shaded by the crowns. Open. 
When less than one-half the ground is shaded by the 
crowns. Park forest is a forest in which shade occurs 
only in isolated patches, under single trees or small 
groups. 

Crown Fire. See forest fire. 



472 TIMBER BONDS 

Cruise. To estimate the amount and value of standing 
timber. 

Cruiser. One who cruises. An estimator, a land looker. 

Cruiser's Bark Blazer. See scratcher. 

Cull. 1. Logs which are rejected, or parts of logs de- 
ducted in measurements on account of defects. 2. 
To take out of a forest by selection a portion of the 
trees. 

Culled Forest. Forest from which cuttings by selection 
have removed a portion of the trees. 

Current Annual Increment. The volume of wood pro- 
duced in a given year by the growth of a tree or stand. 

Cut. A season's output of logs. 

Cut a Log. To move one end of a log forward or back- 
ward, so that the log will roll in the desired direction. 

Cut Off. An artificial channel by which the course of 
a stream is straightened, to facilitate log driving. 

Cut-Over Forest. Forest in which most or all of the 
merchantable timber has been cut. 

Cutting Area. The area over which cuttings are to be 
or have been made. 

Cutting Height. The height above the ground at which 
a tree is to be cut. See stump height. 

Cutting Series. A block or a part of a block containing 
even aged stands whose ages differ uniformly within 
given limits and which are to be cut in turn, the cut- 
ting usually following a given direction. A perfect 
cutting series seldom exists, except under the clean cut- 
ting method followed by artificial reproduction, or 
under the sprout method. 

Deaden. To kill a standing tree by girdling it. 

Deadening. An area upon which the trees have been 
deadened. 

Deadener. A heavy log or timber, with spikes set in the 
butt end, so fastened in a log slide that the logs pass- 
ing under it come in contact with the spikes and 
have their speed retarded. 

Deacon Seat. The bench in front of the sleeping bunks 
in a logging camp. 

Deadhead. A sunken or partly sunken log. 

Deadman. A fallen tree on the shore, or the timber 
to which the hawser of a boom is attached. 

Deadwater. See Stillwater. 

Decker. One who rolls logs upon a skidway or log deck. 

Decking Chain. See loading chain. 

Deck Up. To pile logs upon a skidway. 

Deer Foot. A V-shaped iron catch on the side of a 
logging car, in which the binding chain is fastened. 



WORDS AND PHRASES 473 

Dehorn. To saw off the ends of logs bearing the owner's 
marks and put on a new mark. 

Dense. See crown density. 

Diameter Breasthigh. The diameter of a tree 4% feet 
above the ground. 

Diameter Class. All trees in a stand whose diameters 
are within prescribed limits. 

Diameter Growth. The increase in diameter of a tree. 

Diameter Limit. The diameter usually breasthigh, 
which defines the size to which trees are to be meas- 
ured or used for any given purpose. 

Diameter Tape. A tape for ascertaining the diameter 
of trees, so graduated that the diameter corresponding 
to the girth of a tree is read directly from the tape. 

Dingle. The roofed over space between the kitchen and 
the sleeping quarters in a logging camp, commonly 
used as a store room. 

Dinkey. A small locomotive. 

Dog. A short, heavy piece of steel, bent and pointed at 
one end, and with an eye or ring at the other. It is 
used for many purposes in logging, and is sometimes so 
shaped that a blow directly against the line of draft 
will loosen it. 

Dog Boat. See rigging sled. 

Dogger. One who attaches the dogs or hooks to a log 
before it is steam skidded. 

Dog Hooks. 1. The strong hook on the end of a dog- 
warp. 2. A hook on the end of a haul-up chain of a 
size to permit its being hooked into a link of the 
chain when the latter is looped around a log or other 
object. 

Dogs. See skidding tongs. 

Dogwarp. A rope with a strong hook on the end, which 
is used in breaking dangerous jams on falls and 
rapids and in moving logs from other difficult posi- 
tions. 

Dog Wedge. An iron wedge with a ring in the butt, 
which is driven into the end of a log and a chain 
hitched in the ring for skidding the log by horse- 
power; also used in gathering up logs on a drive by 
running a rope through the rings and pulling a num- 
ber of logs at a time through marshes or partly sub- 
merged meadows to the channel. 

Dolly. See upright roller. 

Dolphin. A cluster of piles to which a boom is se- 
cured. 



474 TIMBER BONDS 

Dominant. Having the crown free to light on all sides 
because of greater height. 

Donkey. A portable steam engine equipped with drum 
and cable, used in steam logging. See road donkey, 
yarding donkey, bull donkey, spool donkey. 

Donkey Sled. The heavy sledlike frame upon which a 
donkey engine is fastened. 

Dote. The general term used by lumbermen to denote 
decay or rot in timber. 

Doty. Decayed. 

Double Couplers. Two coupling grabs joined by a short 
cable used for fastening logs together. 

Double Header. A place from which it is possible to 
haul a full load of logs to the landing, and where 
partial loads are topped out or finished to the full 
hauling capacity of teams. 

Down Hill Clevis. A brake on a logging sled, consisting 
of a clevis encircling the runner, to the bottom of 
which a heavy square piece of iron is welded. 

Drag Cart. See bummer. 

Drag In. See dray in. 

Drag Road. See dray road; gutter road. 

Dray Sled. See dray. 

Draw Hook. See gooseneck. 

Draw Skid. See brow skid. 

Dray. A single sled used in dragging logs. One end 
of the log rests upon the sled. 

Dray In. To drag logs from the place where they are 
cut directly to the skidway or landing. 

Dray Road. A narrow road, cut wide enough to allow 
the passage of a team and dray. 

Drive. 1. To float logs or timbers from the forest 
to the mill or shipping point. 2. A body of logs or 
timbers in process of being floated from the forest 
to the mill or shipping point. 3. That part of log- 
ging which consists in floating logs or timbers. . 

Drum Logs. To haul logs by drum and cable out of a 
hollow or cove. 

Dry-Ki. Trees killed by flooding. 

Dry Pick. As applied to a jam, to remove logs singly 
while the water is cut off. 

Dry Roll. In sacking the rear, to roll stranded logs into 
the bed of the stream from which the water has 
been cut off preparatory to flooding. 

Dry Rot. Decay in timber without apparent moisture. 

Dry Slide. See slide. 

Dry Sloop. To sloop lo^s on bare ground when the slope 



WORDS AND PHRASES 475 

is so steep that it would be dangerous to sloop on 
snow. 

Dry Topped. Having a dead or partially defoliated 
crown, discolored foliage, as the result of injury or 
disease. 

Dudler. See dudley. 

Dudley. An engine for hauling logs, which propels it- 
self and drays its load by revolving a large spool 
around which are several turns of a cable fixed at 
each end of the track. 

Duffle. The personal belongings of a woodsman or 
lumberjack which he takes into the woods; dunnage. 

Dump Hook. A levered chain grab hook attached to the 
evener to which a team is hitched when loading logs. 
A movement of the lever releases the hook from the 
logging chain without stopping the team. 

Dump Logs. To roll logs over a bluff, or from a logging 
car or sled into the water. 

Dust a Dam. To fill up with earth or gravel the cracks 
or small holes between planks in the gate of a splash 
dam. 

Dutchman. A short stick placed transversely between 
the outer logs of a load to divert the load toward 
the middle and so keep any logs from falling off. 

End Mark. See mark. 

Estimate. See cruise. 

Estimator. See cruiser. 

Expectation Value. See forest expectation value. 

Experiment Area. A forest area of known size upon 
which successive measurements or other detailed 
studies are made for the determination of the growth 
and behavior of the stand, or upon which experiments 
are conducted to ascertain the effect of methods of 
treatment upon the forest. 

Exposure. See aspect. 

Face Log. See head log. 

Faller. One who fells trees. See head faller. Second 
faller. 

Falling Ax. An ax with a long helve and a long nar- 
row bit, designed especially for felling trees. 

Falling Wedge. A wedge used to throw a tree in the 
desired direction, by driving it into the saw kerf. 

False Ring. The layer of wood, less than a full season's 
growth, and seldom extending around the stem, which 
is formed whenever the diameter growth of a tree 
is interrupted and begins again during the same grow- 
ing season. 

Feeder. See barn boss. 



476 TIMBER BONDS 

Fender Boom. See shear boom. 

Fender Skid. A skid placed on the lower side of a 
skidding trail on a slope to hold the log on the trail 
while being skidded. 

Fid Hook. A slender, flat hook used to keep another 
hook from slipping on a chain. 

Filer. One who files the saws. A saw fitter. 

Final Yield. All material derived from reproduction 
cuttings or clean cuttings. It is usually the chief 
crop, and marks the end of the rotation. 

Fire Line. A strip kept clear of inflammable material 
as a protection against the spread of forest fire. 

First Growth. 1. Natural forest in which no cuttings 
have been made. 2. Trees grown before lumbering 
or severe fire entered the forest; belonging to the 
original stand. 

Fitter. 1. One who notches the tree for felling and 
after it is felled, marks the log lengths into which it 
is to be cut. 2. One who cuts limbs from felled 
trees and rings and slits the bark, preparatory to 
peeling tanbark. 

Float. See drive. 

Float Road. A channel cleared in a swamp and used 
to float cypress logs from ihe woods to the boom at 
the river or mill. 

Flood. See splash. 

Flood Dam. See splash dam. 

Flume. 1. To transport logs or timbers by a flume. 
2. An inclined trough in which water runs, used in 
transporting logs or timbers. 

Flunkey. An assistant, usually either to the engineer 
of a donkey engine or to the cook in a logging camp; 
a chore boy. 

Flying Drive. A drive the main portion of which is 
put through with the utmost dispatch, without stop- 
ping to pick rear. 

Fly Rollway. A skidway or landing on a steep slope, 
from which the logs are released at once by removing 
the brace which holds them. 

Fore and Aft Road. A skid road road made of logs 
placed parallel to its direction, making the road re- 
semble a chute. 

Forest. An area whose principal crop is trees. A 
forest includes both the forest cover and the soil be- 
neath it. A forest judged by the character of the 
stand may be timberland or woodland. These consti- 
tute the two great classes of forests, between which 
is is possible to draw a practical but not an ab- 



WORDS AND PHRASES 477 

solute distinction. Timberland may be broadly de- 
fined as that class of forest which contains in com- 
mercial quantities trees of sufficient size and of the re- 
quired kind to furnish saw logs, pulp wood, ties, poles 
or wood for similar uses. Woodland may be broadly 
defined as forest which contains trees fit for firewood 
or fencing, but none or very few trees which are suita- 
ble for the uses enumerated above. A timber tract is a 
body of timberland, usually of large area. A woodlot 
is a forest of small area in which the wood is used 
mainly for fuel, fencing, and other farm purposes. 

Forest Capital. The capital which a forest represents. 
It consists of the forest land or fixed capital, and 
the stand. 

Forest Cover. All trees and other plants in a forest. 

Forester. One who practices forestry as a profession. 

Forest Expectation Value. The present net value of all 
future returns expected from the forest capital. It 
is determined by discounting to the present time, 
at compound interest, all returns and expenses antici- 
pated. 

Forest Extension. The establishment of forest upon 
areas where it is at present absent or insufficient. 

Forest Fire. A fire in timberland or woodland. A forest 
fire may be a ground fire, a surface fire, a stand fire, 
or a crown fire. A ground fire is one which burns in 
the forest floor and does not appear above the ground. 
When a fire runs over the surface or burns the under- 
growth, it is a surface fire. When a surface fire 
spreads from the undergrowth to the stand, igniting 
the trees, it becomes a stand fire. Under certain con- 
ditions the crowns of the trees may be ignited, caus- 
ing a crown fire. 

Forest Floor. The deposit of vegetable matter on the 
ground in a forest. Litter includes the upper, but 
slightly decomposed portion of the forest floor; humus, 
the portion in which decomposition is well advanced. 

Forest Influences. All effects resulting from the pres- 
ece of the forest, upon health, climate, stream flow 
and economic conditions. 

Forest Management. The practical application of the 
principles of forestry to forest area. Forest manage- 
ment includes forest mensuration, or the determina- 
tion of the present and future products of the forest. 
Forest organization, or the preparation of working 
plans and planting plans, detailed and comprehensive 
schemes for the establishment and best use of the 
forest; and forest finance, or the determination of the 



478 TIMBER BONDS 

money returns from forestry. Three great systems of 
forest management are distinguished: The seed sys- 
tem, the sprout system and the composite system. The 
seed system includes the stand method, group method, 
strip method, patch method, strip stand method, group 
seed method, scattered seed method, single tree meth- 
od, reserve seed method, clean cutting method. The 
sprout system includes the sprout method. The com- 
posite system includes the reserve sprout method. 

Forest Policy. The principles which govern the ad- 
ministration of a forest for its best permanent use. 

Forest Products. All usable material yielded by the 
forest. Major products include all wood harvested 
for any purpose. Minor products include all forest 
products except wood. 

Forest Protection. The safeguarding of the forest 
against any damage not caused by its own growth. 

Forestry. The science and art of making the best per- 
manent use of the forest. The main branches of 
forestry are forest policy, silviculture, forest manage- 
ment, forest protection and forest utilization. 

Forest Type. A forest or a part of a forest possessing 
distinctive characteristics of composition or habits of 
growth. 

Form Class. All trees in a stand so similar in form 
that the same form factor is applicable in determin- 
ing their actual volume. 

Form Factor. The ratio expressed decimally between 
the volume of a tree, or portion of a tree, and of a 
cylinder of the same height and diameter. The vol- 
ume of this cylinder multiplied by the form factor 
gives the actual volume of the tree or portion of the 
tree. Three kinds of form factors are distinguished, 
according to the portion of the tree to which they 
refer: A tree form factor is used for determining the 
actual volume of the whole tree; a stem form factor 
for determining the volume of the stem, and a timber 
form factor for determining the merchantable contents 
of stem, crown or both. A form factor is called ab- 
solute, when the diameter of the tree is measured at 
any convenient height, the form factor referring only 
to that portion of the tree above the point at which 
the diameter is measured; normal, when the diameter 
is measured at a height in constant ratio to the total 
height of the tree; and artificial, when the breasthigh 
diameter is measured. 

Four Paws. See double couplers. 

Frog. 1. The junction of two branches of a flume. 



WORDS AND PHRASES 479 

2. A timber placed at the mouth of a slide to direct 
the discharge of the logs. 

Full Scale. Measurement of logs, in which no reduction 
is made for defects. 

Future Yield. The amount of wood which given trees 
upon a given area will contain after a given period. 

Future Yield Table. A tabular statement of future 
yield. 

Gangway. The incline plane up which logs are moved 
from the water into a sawmill. 

Gap Stick. The pole placed across the entrance of a 
sorting jack to close it, when not in use. 

Gee Throw. A heavy, wooden lever, with a curved iron 
point, used to break out logging sleds. 

Gin Pole. A pole secured by guy ropes to the top of 
which tackle for loading logs is fastened. 

Glancer. See fender skid. 

Glancer Boom. See shear boom. 

Glisse Skids. Freshly peeled skids upon which logs are 
slid instead of rolled when being loaded. 

Go Back Road. A road upon which unloaded logging 
sleds can return to the skidways for reloading, without 
meeting the loaded sleds en route to the landing. 

Go-Devil. See dray. 

Gooseneck. 1. A wooden bar used to couple two log- 
ging trunks. 2. The point of draft on a logging 
sled; it consists of a curved iron hook bolted to the 
roll. 3. A curved iron driven into the bottom of 
a slide to check the speed of descending logs. 

Goosepen. A large hole burned in a standing tree. 

Grab Hook. A hook having a narrow throat, adapted 
to grasp any link of a chain. 

Grab Link. See slip grab. 

Grabs. See skidding tongs. 

Grab Skipper. A short iron pry or hammer, used to 
remove the skidding tongs from a log. 

Grapples. 1. Two small iron dogs joined by a short 
chain, and used to couple logs end to end when skid- 
ding on mountains, so that several logs may be skid- 
ded by one horse at the same time. See skidding 
tongs. 

Gravel a Dam. To cover with gravel or earth the 
upstream side of the timber work of a dam to make 
it water tight. 

Greaser. See road monkey. 

Grips. See skidding tongs. 

Ground Cover. All small plants growing in a forest ex- 



480 TIMBER BONDS 

cept young trees; such as ferns, mosses, grasses and 
weeds. See underbrush. 

Ground Fire. See forest fire. 

Ground Loader. See send-up man. 

Group Method. A method of conservative lumbering 
in which groups of young trees which have sprung up 
in openings caused by logging, insect damage, wind- 
fall, snowbreak, or other agency, are taken as start- 
ing points for the future forests; or if these are 
insufficient, small openings are purposely made. Re- 
production by self-sown seed from the mature stand 
at the edges of these groups is secured by careful cut- 
tings, which extend the groups until they join. 

Group Mixture. A mixed forest in which trees of the 
same species occur in groups not large enough to be 
considered pure stands. 

Group Seed Method. A method of conservative lumber- 
ing in which the forest is reproduced after a single 
cutting, by leaving in groups seed trees of the kind de- 
sired. 

Grouser. A large and long stick of square timber 
sharpened at the lower end and placed in the bow 
of a steam logging boat; it takes the place of an anchor 
in shallow water, and can be raised or lowered by 
steam power. 

Guard a Hill. To keep a logging road on steep decline 
in condition for use. 

Gun. To aim a tree in felling it. In the case of a very 
large brittle tree, such as redwood, a sighting device 
is used. 

Gunning Stick. See gun. 

Gutterman. See swamper. 

Gutter Road. The path followed in skidding logs. 

Handbarrow. Two strong, light poles held in position 
by rungs, upon which bark or wood is carried by two 
men. 

Hand Pike. A piked lever usually six to eight feet long 
for handling floating logs. 

Hand Skidder. One who accompanies a log as it is be- 
ing dragged and places short skids beneath it. 

Hang the Boom. To put the boom in place. 

Hang Up. 1. To fell a tree so that it catches against 
another instead of falling to the ground. 2. As ap- 
plied to river driving, to discontinue; thus a drive may 
be "hung up" for lack of water, or for some other 
reason. 

Hardwood. As applied to trees and logs, broadleafed, 
belonging to the dicotyledons. 



WORDS AND PHRASES 481 

Haul. In logging, the distance and route over which 
teams must go between two given points, as between 
the yard or skidway and the landing. 

Haul Back. A small wire rope, traveling between the 
donkey engine and a pulley, set near the logs to be 
dragged, used to return the cable. 

Haul Up. A light chain and hook by which a horse 
may be hitched to a cable to move it where desired. 

Hay Road. See tote road. 

Hay Wire Outfit. A contemptuous term for loggers with 
poor equipment. 

Head Block. The logs placed under the front end of the 
skids in a skidway to raise them to the desired height. 

Head Driver. An expert river driver who, during the 
drive, is stationed at a point where a jam is feared. 
Head drivers usually work in pairs. 

Head Faller. The chief of a crew of fallers. 

Head Log. 1. The front bottom log on a skidway. 
2. The front log in a turn. 

Head Push. See straw boss. 

Headquarters. In logging, the distributing point for 
supplies, equipment and mail; not usually the execu- 
tive or administrative center. 

Head Tree. In steam skidding, the tree to which the 
cable upon which the traveler runs is attached. 

Headworks. A platform or raft, with windlass or cap- 
stan, which is attached to the front of a log raft or 
boom of logs, for warping, kedging, or winding it 
through lakes or still water, by hand or horse power. 

Height Class. All trees in a stand whose heights are 
within prescribed limits. 

Height Growth. The increase in height of a tree. 

Height Measure. An instrument for measuring the 
height of a tree. 

Helper. See second faller. 

Hoist. See loading tripod. 

Holding Boom. See storage boom. 

Hook Tender. The foreman of a yarding crew; specifi- 
cally one who directs the attaching of the cable to a 
turn of logs. 

Horse Dam. A temporary dam made by placing large 
logs across a stream, in order to raise the water be- 
hind it, so as to float the rear. 

Horse Logs. In river driving, to drag stranded logs 
back to the stream by the use of peaveys. 

Hovel. A stable for logging teams. 

Humus. That portion of the forest floor in which de- 
composition is well advanced, 



482 TIMBER BONDS 

Hypsometer. See height measure. 

Ice a Road. To sprinkle water on a logging road so 
that a coating of ice may form, thus facilitating the 
hauling of logs. 

Ice Guards. Heavy timbers fastened fan shaped about 
a cluster of boom piles at an angle of approximately 
thirty degrees to the surface of the water. They pre- 
vent the destruction of the boom by ice, through forc- 
ing it to mount the guards and be broken up. 

Increment. The volume or value of wood produced dur- 
ing a given period by the growth of a tree or of a 
stand. Three kinds of increment are distinguished: 
Volume increment is the increase in volume of a tree 
or stand; quality increment is the increase in value 
per unit of volume; price increment is the increase re- 
sulting from an advance in the price of forest products 
independent of quality increment. 

Index. The highest average actually found upon a given 
locality. The term index applied to stand, diameter 
growth, height growth, increment and present and fu- 
ture yield is the equivalent of normal, when normal 
is used to describe the assumed standard based upon 
actual measurement. 

Index Forest. That forest which in density, volume and 
increment reaches the highest average which has been 
found upon a given locality. Measurements of such 
a forest provide a standard for comparison with other 
forests of the same age and composition, grown under 
similar conditions. 

Intermediate. Having the crown shaded on the sides, 
but free to light on the top. 

Intermediate Yield. All material from thinnings or 
from any cuttings not intended to invite or assist re- 
production. See yield. 

Intolerant. Incapable of enduring heavy shade. 

Irregular Forest. Forests in which the trees differ con- 
siderably in age. 

Jack Chain. An endless spiked chain, which moves 
logs from one point to another, usually from the mill 
pond into the sawmill. See bull chain. 

Jack Ladder. See gangway. 

Jackpot. 1. A contemptuous expression applied to an 
unskillful piece of work in logging. 2. An irregular 
pile of logs. 

Jam. A stoppage or congestion of logs in a stream, 
due to an obstruction or to low water. 

Jam Cracker. See head driver. 

Jammer. An improved form of gin, mounted on a mov- 



WORDS AND PHRASES 483 

able framework, and used to load logs on sleds and 
cars by horsepower. 

Jam — to Break. To start in motion logs which have 
jammed. 

Jay Hawk. To strip one four-foot length of bark from 
a tanbark oak, leaving the tree standing. 

Jiboo. To remove a dog from a log. 

Jigger. To pull a log by horsepower over a level place 
in a slide. 

Jim Binder. See binder. 

Jobber. A logging contractor or subcontractor. 

Jobber's Sun. A term applied to the moon in a jobber's 
or contractor's logging camp, on account of the early 
and late hours of commencing and ending work. 

Jumper. A sled shod with wood, used for hauling sup- 
plies over bare ground into a logging camp. 

Katydid. See logging wheels. 

Key Log. In river driving, a log which is so caught or 
wedged that a jam is formed and held. 

Kilhig. A short, stout pole used as a lever or brace 
to direct the fall of a tree. 

Knot. See limb. 

Knot Bumper. See limber. 

Knotter. See limber. 

Laker. A log driver expert at handling logs on lakes. 

Landing. 1. A place to which logs are hauled or skid- 
ded preparatory to transportation by water or rail. 
A rough and tumble landing is one in which no at- 
tempt is made to pile the logs regularly. 2. A 
platform, usually at the foot of a skid road, where 
logs are collected and loaded on cars. A lightning 
landing is one having such an incline that the logs 
may roll upon the cars without assistance. 

Landing Man. One who unloads logging sleds at the 
landing. 

Land Looker. See cruiser. 

Lapwood. Tops left in the woods in logging. 

Lash Pole. A cross pole which holds logs together in 
a raft. 

Lazy Haul. See jigger. 

Lead. A snatch block with a hook or loop for fasten- 
ing it to convenient stationary objects, used for guid- 
ing the cable by which logs are dragged. 

Lead Line. A wire rope, with an eye at each end, used 
to anchor the snatch block in setting a lead. 

Lead Log. See brow skid. Head log. 

Lightning Landing. See landing. 

Limb. To remove the limbs from a felled tree. 



484 TIMBER BONDS 

Limber. One who cuts the limbs from felled trees. 

Line Horse. The horse which drags the cable from the 
yarding engine to the log to which the cable is to 
be attached. 

Litter. That portion of the forest floor which is not 
in an advanced state of decomposition. See humus. 

Lizard. See dray. 

Loader. One who loads logs on sleds or cars. See 
steam loader. 

Loading Chain. A long chain used in loading or piling 
logs with horses. 

Loading Jack. A platformed framework upon which 
logs are hoisted from the water for loading upon cars. 

Loading Tripod. Three long timbers joined at their tops 
in the shape of a tripod, for holding a pulley block 
in proper position to load logs on cars from a lake or 
stream. 

Locality. An area considered with reference to forest 
producing power; the factors of the locality are the 
altitude, soil, slope, aspect and other local conditions 
influencing forest growth. 

Locality Class. All localities with similar forest pro- 
ducing power. 

Lock Down. A strip of tough wood, with holes in the 
ends, which is laid across a raft of logs. Rafting 
pins are driven through the holes into the logs, thus 
holding the raft together. 

Lodge. See hang up. 

Logan. See pokelogan. 

Log Deck. The platform upon a loading jack. 

Log Dump. See landing. 

Log Fixer. See rosser. 

Log Rule. 1. A tabular statement of the amount of 
lumber which can be sawed from logs of given lengths 
and diameters. 2. A graduated stick for measuring 
the diameters of logs. The number of board feet in 
logs of given diameters and lengths is shown upon the 
stick. 

Log Scale. See log rule. 

Logger. One engaged in logging. 

Logging Sled. The heavy double sled used to haul logs 
from the skidway to the landing. 

Logging Sled Road. A road leading from the skidway 
or yard to the landing. 

Logging Wheels. A pair of wheels, usually about ten 
feet in diameter, for transporting logs. 

Log Jack. See gangway. 

Log. To cut logs and deliver them at a place from 



WORDS AND PHRASES 485 

which they can be transported by water or rail, or, 
less frequently at the mill. 

Log Watch. See head driver. 

Logway. See gangway. 

Long Butt. See butt off. 

Loose-Tongued Sloop. See swing dingle. 

Lubber Lift. To raise the end of a log by means of a 
pry, and through the use of weight instead of strength. 

Lug Hooks. A pair of tongs attached to the middle of 
a short bar, and used by two men to carry small logs. 

Lumber. To log, or to manufacture logs into lumber, 
or both. 

Lumberjack. One who works in a logging camp. 

Lumberman. One engaged in lumbering. 

Many-Aged Forest. A forest through all parts of which 
many different age classes of trees tend to distribute 
themselves. When all age classes are thus distributed, 
the forest is "all-aged." These two terms replace 
selection forest; many-aged being substituted for im- 
perfect selection, and all aged for perfect or ideal 
selection, 

Mature Forest. Forest so old that growth in height is 
practically at an end and diameter growth is decreas- 
ing. 

Mark. A letter or sign indicating ownership, which is 
stamped on the ends of logs. 

Mark Caller. In sorting logs, one who stands at the 
lower end of the sorting jack and calls the different 
marks, so that the logs may be guided into the proper 
channels or pockets. 

Marker. One who puts the mark on the ends of logs. 

Marking Hammer. A hammer bearing a raised device 
which is stamped on logs to indicate ownership. 

Marking Hatchet. A hatchet for marking trees. A 
raised die is cut on the head for stamping the face of 
the blaze. 

Marking Iron. See marking hammer. 

Match. See mate. 

Mate. To place together in a raft logs of similar size. 

Mean Annual Increment. The total increment of a tree 
or stand divided by its age in years. 

Merchantable Length. The total length of that portion 
of the stem which can be used under given conditions. 

Merchantable Volume. The total volume of that por- 
tion of the tree which can be used under given condi- 
tions. 

Mild Humus. Humus in a condition favorable to forest 
growth. 



486 TIMBER BONDS 

Mill Pond. The pond near a saw mill in which logs to 
be sawn are held. 

Mixed Forest. Forest composed of trees of two or more 
species. 

Monitor. See catamaran. 

Moss. To fill with moss the crevices between logs in 
a logging camp. 

Mud. To fill with soft clay the crevices between the 
logs in a logging camp. 

Mudboat. A low sled with wide runners, used for haul- 
ing logs in swamps. 

Mudsill. The bed piece or bottom timber of a dam which 
is placed across the stream, usually resting on rocks 
or in mud. 

National Forest Reserve. A forest which is the property 
of the United States. 

Nick. See undercut. 

Nose. To round off the end of a log in order to make it 
drag or slip more easily. 

Notch. To make an undercut in a tree preparatory to 
felling it. 

Old Field Growth. See volunteer growth. 

Old Growth. See first growth. 

Open. See crown density. 

Overmature Forest. Overripe forest in which, as the 
result of age, growth has ceased and decay set in. 

Overtopped. Having the crown shaded from above, al- 
though a side or sides may be free to light. 

Peaker. 1. A load of logs narrowing sharply toward 
the top, and thus shaped like an inverted V. 2. The 
top log of a load. 

Peavey. A stout lever five to seven feet long, fittted 
at the larger end with a metal socket and pike and a 
curved steel hook which works on a bolt; used in 
handling logs, especially in driving. A peavy differs 
from a cant hook in having a pike instead of a toe 
ring and lip at the end. 

Pecky. A term applied to an unsoundness most com- 
mon in bald cypress. 

Peeler. See Barker. 

Peggy. See pecky. 

Pickaroon. A piked pole fitted with a curved hook, used 
in holding boats to jams in driving, and for pulling 
logs from brush and eddies out into the current. 

Pick the Rear. See sack the rear. 

Pier Dam. A pier built from the shore, usually slanting 
down stream, to narrow and deepen the channel, to 



WORDS AND PHRASES 487 

guide logs past an obstruction, or to throw all the 
water on one side of an island. 

Pig. See rigging sled. 

Pig Tail. An iron device driven into trees or stumps to 
support a wire or small rope. 

Pike Pole. A piked pole, twelve to twenty feet long, 
used in river driving. 

Pitch Pocket. A cavity in wood filled with resin. 

Pitch Streak. A seam or shake filled with resin. 

Plug and Knock Down. A device for fastening boom 
sticks together, in the absence of chains. It consists 
of a withe secured by wooden plugs in holes bored in 
the booms. 

Pocket Boom. A boom in which logs are held after they 
are sorted. 

Point. See gun. 

Pokelogan. A bay or pocket into which logs may float 
off during a drive. 

Pole. A tree from four to twelve inches in diameter 
breasthigh. See tree class. A small pole is a tree 
from four to eight inches in diameter breasthigh. A 
large pole is a tree from eight to twelve inches in 
diameter breasthigh. 

Pond Man. One who collects logs in the mill pond and 
floats them to the gangway. 

Pontoon. See catamaran. 

Present Yield. The amount of wood at present contained 
in given trees upon a given area. 

Private Forest. A forest which is the property of an 
in dividual, corporation, company, or private insti- 
tution. 

Prize Logs. Logs which come to the sorting jack with- 
out marks denoting ownership. 

Pruning. The removal of branches from standing trees 
by natural or artificial means. The clearing of the 
stem through the death and fall of branches for want 
of light is known as natural pruning. When living 
branches are removed by cutting them close to the 
stem the operation is known as green pruning; when 
it is confined to dead branches, as dry pruning. Some 
mill men will not buy logs known to have been 
pruned. 

Pull Back. See haul back. 

Pull Boat. A flatboat, carrying a steam skidder or a 
donkey, used in logging cypress. 

Pull the Briar. To use a crosscut saw. 

Put In. In logging, to deliver logs at the landing. 

Pure Forest. Forest composed of trees of one species. 



488 TIMBER BONDS 

In practice, a forest in which eighty per cent of the 
trees are of one species. 

Quickwater. That part of a stream which has fall 
enough to create a decided current. 

Rafter Dam. A dam in which long timbers are set on 
the upstream side at an angle of twenty to forty 
degrees to the water surface. The pressure of the 
water against the timbers holds the dam solidly 
against the stream bed. 

Ram Pike. A tree broken off by wind and with a splin- 
tered end on the portion left standing. 

Rank. To haul and pile regularly, as, to rank bark or 
cord wood. 

Ranking Bar. See handbarrow. 

Ranking Jumper. A wood-shod sled upon which tan- 
bark is hauled. 

Rave. A piece of iron or wood which secures the beam 
to the runners of a logging sled. 

Rear. The upstream end of a drive; the logs may be 
either stranded or floating. "Floating Rear" com- 
prises those logs which may be floated back into the 
current; "dry rear," those which must be dragged 
or rolled back. 

Receiving Boom. See storage boom. 

Regular Forest. Forest in which the trees are about 
the same age. 

Ride. The side of a log upon which it rests when being 
dragged. 

Ride a Log. To stand on a floating log. 

Rigging. The cables, blocks, and hooks used in skid- 
ding logs by steam power. 

Rigging Sled. A sled used to haul hooks and blocks on 
a skid road. 

Rigging Slinger. 1. A member of a yarding crew, 
whose chief duty it is to place chokers or grabs on 
logs. 2. One who attaches the rigging to trees, in steam 
skidding. 

Ring. A section of tanbark, usually four feet long. 

Ring Rot. Decay in a log, which follows the annual 
rings more or less closely. 

Rise. The difference in diameter, or taper, between two 
points in a log. 

River Boss. The foreman in charge of a log drive. 

River Driver. One who works on a log drive. 

River Rat. A log driven whose work is chiefly on the 
river; contrasted with Laker. 

Road Donkey. A donkey engine mounted on a heavy 
sled, which drags logs along a skid road by winding 



WORDS AND PHRASES 489 

a cable on a drum. It has a second drum for the haul 

Road Gang. That portion of the crew of a logging camp 
who cut out logging roads and keep them in repair. 

Road Monkey. One whose duty it is to keep a logging 
road in proper condition. 

Roll. The crossbar of a logging sled into which the 
tongue is set. 

Roller. See Roll; Upright roller. 

Rolling Dam. A dam for raising the water in a shallow 
stream. It has no sluiceways, but a smooth top of 
timber over which, under a sufficient head of water, 
logs may slide or roll. 

Roll the Boom. To roll a boom of logs along the shore 
of a lake against which it is held bp wind, by the 
use of a cable operated by a steamboat or kedge. 
The cable is attached to the outer side of the boom, 
hauled up, then attached again, thus propelling the 
boom by revolving it against the shore when it would 
be impossible to tow it. 

Rollway. See landing. 

Rooster. See gooseneck. 

Root Collar. The place at the base of a tree where the 
swelling which is the direct result of the ramifications 
of the roots begins. 

Bosser. One who barks and smooths the ridge of a 
log in order that it may slide more easily. 

Rotation. The period represented by the age of a for- 
est, or a part of a forest, at the time when it is cut, or 
intended to be cut. The following classes of rota- 
tion are distinguished: Financial Rotation, under 
which a forest yields the highest net interest on its 
capital value, calculating at compound interest. In- 
come Rotation, under which a forest yields the high- 
est net return, calculating without interest. Silvical 
Rotation, the rotation most favorable to the natural 
reproduction of the forest under a given method. 
Technical Rotation, under which a forest yields the 
material most useful for a certain purpose. Volume 
Rotation, under which a forest yields the greatest 
quantity of the material. 

Round Timber. Pine trees which have not been tur- 
pentined. 

Round Turn. A space at the head of a logging sled 
road, in which the sled may be turned around with- 
out unhitching the team. 

Runner Chain. A chain bound loosely around the for- 
ward end of the runners of a logging sled as a brake. 



490 TIMBER BONDS 

Runner Dog. A curved iron attached to the runner of 
the hind sled of a logging sled, which holds the loaded 
sled on steep hills by heing forced into the bed of the 
road by any backward movement. 

Runway. See gutter road. 

Rutter. A form of plow for cutting ruts in a logging 
road for the runners of the sled to run in. 

Sack the Rear. To follow a drive and roll in logs 
which have lodged or grounded. 

Sack the Slide. To return to a slide logs which have 
jumped out. 

Saddle. The depression cut in a transverse skid in a 
skid road to guide the logs which pass over it. 

Sample Tree. A tree which in diameter, height, and 
volume is representative of a tree class. A class 
sample is a tree which in diameter, height and volume 
represents the average of several tree classes. 

Sampson. An appliance for loosening or starting logs 
by horse power. It usually consists of a strong, heavy 
timber and a chain terminating in a heavy swamp 
hook. The timber is placed upright beside the piece 
to be moved, the chain fastened around it, and the 
hook inserted low down on the opposite side. Lever- 
age is then applied by a team hitched to the upper end 
of the upright timber. 

Sampson a Tree. To direct the fall of a tree by means 
of a lever and pole. 

Sapling. A tree three feet or over in height, and less 
than four inches in diameter breasthigh. A small 
sapling is a sapling from three to ten feet high. A 
large sapling is a sapling ten feet or over in height. 

Sap Stain. Discoloration of the sap wood. 

Saw fitter. See Filer. 

Sawyer. See Paller. 

Scale Book. A book especially designed for recording 
the contents of scaled logs. 

Scaler. One who determines the volume of logs. 

Scalper. See Rosser. 

Scoot. See Dray. 

Scratcher. An instrument used for marking trees. It 
usually consists of a hook-like gouge fastened to a 
flat, elliptical iron hoop, with wooden handle plates 
on the opposite side from the gouge. 

Season Check. See Check. 

Second Faller. The subordinate in a crew of fallers. 

Second Growth. Forest growth which comes up nat- 
urally after cutting, fire, or other disturbing cause. 



WORDS AND PHRASES 491 

See Forest. A forest composed wholly or mainly of 
trees grown from seed. 

Seedling. 1. A tree grown from seed. 2. A tree 
grown from seed which has not reached a height of 
three feet. See Tree Class. 

Seed Tree. Any tree which bears seed specifically, a 
tree left by the logger to provide the seed for nat- 
ural reproduction. 

Self-Loading Dam. See Rafter dam. 

Semi-mature Forest. Forest in which rapid growth in 
height has culminated, but diameter growth has not 
begun to fall off. 

Send Up Man. That member of a loading crew who 
guides the logs up the skids. 

Send Up. In loading to raise logs up skids with cant 
hooks, or by steam or horse power. 

Setting. The temporary station of a portable saw mill, 
a yarding engine, or other machine used in logging. 

Severance Cutting. The cutting of all trees upon a nar- 
row strip before natural pruning has far advanced, in 
order that the trees bordering this strip may, as the 
result of partial exposure, become wind-firm through 
the development of strong roots. Thus severance cut- 
tings are made to strengthen the trees on the edge 
of a stand which will later be entirely exposed 
through the removal of the stand which now pro- 
tects it. 

Shaft. See Stem. 

Shake. A crack in timber, due to frost or wind. 

Shanty Boat. See Wanigan. 

Shanty Boss. See Chore Boy. 

Shear Boom. A boom so secured that it guides floating 
logs in the desired direction. 

Shear Skid. See Fender Skid. 

Shoot a Jam. To loosen a log jam with dynamite. 

Shore Hold. The attachment of the hawser of a raft 
of logs to an object on the shore. 

Shore Road. See Go-back road. 

Shot Holes. Holes made in wood by boring insects. 

Side Jam. A jam which has formed on one side of a 
stream, usually where the logs are forced to the shore 
at a bend by the current, or where the water is shal* 
low or there are partially submerged rocks. 

Side Mark. See Bark Mark. 

Side Winder. A tree knocked down unexpectedly by 
the falling of another. 

Signal Man. One who transmits orders from the fore- 



492 TIMBER r>ONDS 

man of a yarding crew to the engineer of a yarding 
donkey. 

Silvics. 1. The science which treats of the life of 
trees in the forest. 2. The habit of behavior of a 
tree in the forest. 

Silviculture. The art of producing and tending a for- 
est; the application of the knowledge of silvics in 
the treatment of a forest. 

Single Tree Method. That method of conservative lum- 
bering in which reproduction from self-sown seed 
under the shelter of the old stand is invited by the 
cutting of single trees. This cutting may be made 
throughout the forest, as in some woodlots, or in defi- 
nite portions of the forest in turn. 

Single Out. To float logs, usually cypress, one at a time, 
from the woods to the float road. 

Sinker. See Deadhead. 

Sinker Boat. See Catamaran. 

Skid. 1. To draw logs from the stump to the skidway, 
landing, or mill. 2. As applied to a road, to re- 
enforce by placing rods or poles across it. 3. A log 
or pole, commonly used in pairs, upon which logs are 
handled or piled, or the log or pole laid transversely 
in a skid road. 

Skidder. 1. One who skides logs. 2. A steam engine, 
usually operating from a railroad track, which skids 
logs by means of a cable. 3. The foreman of a crew 
which constructs skid roads. 

Skidding Chain. A heavy chain used in skidding logs. 

Skidding Hooks. See Skidding tongs. 

Skidding Sled. See Dray. 

Skidding Tongs. A pair of hooks attached by links to 
a ring and used for skidding logs. 

Skidding Trail. See Gutter Road. 

Skid Grease. A heavy oil applied to skids to lessen the 
friction of logs dragged over them. 

Skid Road. 1. A road or trail leading from the stump 
to the skidway or landing. 2. A road over which 
logs are dragged, having heavy transverse skids par- 
tially sunk in the ground, usually at intervals of about 
five feet. 

Skid Up. 1. To level or re-enforce a logging road by 
the use of skids. 2. To collect logs and pile them 
on a skidway. 

Skidway. Two skids laid parallel at right angles to a 
road, usually raised above the ground at the end 
nearest the road. Logs are usually piled upon a skid- 



WORDS AND PHRASES 493 

way as they are brought from the stump for loading 
upon sleds, wagons or cars. 

Sky Hooker. See Top loader. 

Slack Water. In river driving the temporary slacken- 
ing of the current caused by the formation of a jam. 

Slant Dam. See Rafter Dam. 

Slash. 1. The debris left after logging, wind or fire. 2. 
Forest land which has been logged off and upon 
which the limbs and tops remain, or which is covered 
with debris as the result of fire or wind. 

Slashing. See Slash. 

Sled Fender. 1. One who assists in loading and unload- 
ing logs or skidding with dray. 2. A member of the 
hauling crew who accompanies the turn of logs to the 
landing, unhooks the grabs, and sees that they are 
returned to the yarding engine. 

Slide. A trough built of logs or timber, used to trans- 
port logs down a slope. 

Slide Tender. One who keeps a slide in repair. 

Slip Grab. A pear-shaped link attached by a swivel to 
a skidding evener or whiffletree, through which the 
chain is passed. The chain runs freely when the slip 
grab is held sideways, but catches when the grab is 
straight. 

Slipper. See Rosser. 

Slip Skids. See Glisse skids. 

Sloop. See dray. 

Sloop Logs. To haul logs down steep slopes on a dray 
or sloop equipped with a tongue. 

Slope. The gradient of the land surface. In forest de- 
scription the following terms are used to define the 
slope, each of which has its equivalent in percentages 
of the horizontal distance and in degrees: 

Level = 0- 5% = .0- 3.0° 

Gentle = 5- 15%= 3.0- 8.5° 

Moderate = 15- 30 % = 8.5-16.5° 
Steep = 30- 50%= 16.5-26.5° 

Verysteep= 50-100 %= 26.5-45.0° 
Precipitous=over 100%=over 45.0° 

Slough Pig. Usually a second rate river driver who is 
assigned to picking logs out of sloughs in advance of 
the rear. 

Sluice. To float logs through the sluiceway in a splash 
dam. See Flume. 

Sluice Gate. The gate closing a sluiceway in a splash 
dam. 

Sluiceway. The opening in a splash dam through which 
logs pass. 



494 TIMBER BONDS 

Snake. See Skid. 
Snaking; Trail. See Gutter Road. 
Snatch Team. See Tow Team. 

Snib. In river driving, to be carried away purposely, 
but ostensibly by accident, on the first portion of a 
jam that moves; to ride away from work under guise 
of being accidentally carried off. 
Snipe. See Nose. 

Sniper. One who noses logs before they are skidded. 
Snow a Road. To cover bare spots in a logging road 

with snow, to facilitate the passage of sleds. 
Snowbreak. 1. The breaking of trees by snow. 2. An 

area on which trees have been broken by snow. 
Snow Slide. A temporary slide on a steep slope, made 
by dragging a large log through deep snow which is 
soft or thawing; when frozen solidly it may be used 
to slide logs to a point where they can be reached 
by sleds. 
Snub. To check, usually by means of a snub line, the 
speed of logging sleds or logs on steep slopes, or of a 
log raft. 
Softwood. As applied to trees and logs, needle-leafed 

coniferous. 
Soil. In forest description the origin, composition, depth 
and moisture of the forest soil are considered under 
soil. Its depth is defined by the following terms, each 
of which has its equivalent in inches: 
Very shallow=less than six inches 
Shallow =six to twelve inches 

Moderate =twelve to twenty-four inches 
Deep =twenty-four to thirty-six inches 

Very deep =over thirty-six inches 
The moisture of the soil is defined by the following 

terms : 
Wet: When water drips from a piece held in the 

hand without pressing. 
Moist: When water drips from a piece pressed in the 

hand. 
Fresh: When no water drips from a piece pressed in 

the hand, though it is unmistakably present. 
Dry: When there is little or no trace of water. 
Very Dry: When the soil is parched. Such soils are 
usually caked and very hard, sand being an excep- 
tion. 
Solid Jam. 1. In river driving, a jam formed solidly 
and extending from bank to bank of a stream. 2. A 
drive is said to be "in a solid jam" when the stream 



WORDS AND PHRASES 495 

is full of logs from the point to which the rear is 
cleared to the mill, sorting jack, or storage boom. 

Sorting Boom. A strong boom used to guide logs into 
the sorting jack, to both sides of which it is usually 
attached. 

Sorting Gap. See Sorting Jack. 

Sorting Jack. A raft, secured in a stream, through an 
opening in which logs pass to be sorted by their marks 
and diverted into pocket booms or the down stream 
channel. 

Spanish Windlass. A device for moving heavy objects 
in logging. It consists of a rope or chain, within a 
turn of which a lever is inserted and power gained by 
twisting. 

Spiked Skid. A skid in which spikes are inserted in 
order to keep logs from sliding back when being 
loaded or piled. 

Splash. To drive logs by releasing a head of water 
confined by a splash dam. 

Splash Boards. Boards placed temporarily on top of a 
rolling dam to heighten the dam, and thus to increase 
the head of water available for river driving. 

Splash Dam. A dam built to store a head of water for 
driving logs. 

Split Roof. A roof of a logging camp or barn made by 
laying strips split from straight-grained timber. The 
strips run from the ridge pole to the eaves, and break 
the joints with other strips, as in a shingle roof. 

Spool Donkey. A donkey engine for winding cable, 
equipped with a spool or capstan, instead of a drum. 

Spool Tender. One who guides the cable on a spool 
donkey. 

Spring Board. A short board, shod at one end with an 
iron calk, which is inserted in a notch cut in a 
tree, on which the faller stands while felling a tree. 

Spring Pole. 1. A springy pole attached to the tongue 
of a logging sled and passing over the roll and under 
the beam, for holding the weight of the tongue off 
the horse's neck. 2. A device for steadying a cross- 
cut saw, so that one man can use it instead of two. 

Sprinkler. A large wooden tank from which water is 
sprinkled over logging roads during freezing weather 
in order to ice the surface. 

Sprinkler Sleds. The sleds upon which the sprinkler 
is mounted. They consist of two sleds whose runners 
turn up at each end fastened together by cross chains, 
and each having a pole, in order that the sprinkler 



496 TIMBER BONDS 

may be hauled in either direction without being turned 
around. 

Sprout. A tree which has grown from a stump or root. 
A coppice growth. 

Spud. A tool for removing bark. A barking iron. 

Spudder. See Barker. 

Stag. To cut off trousers at the knee, or boots at the 
ankle. 

Stand. All growing trees in a forest or in part of a 
forest. 

Standard. A tree from one to two feet in diameter 
breasthigh. See Tree class. 

Standard Forest. A forest of standards. 

Stand Class. All stands of similar density, height and 
volume for a given age and diameter and a given lo- 
cality class. The index stand may constitute the first 
stand class. 

Stand Fire. See forest fire. 

Stand Method. That method of conservative lumbering 
in which reproduction is secured from self-sown seed 
by means of successive cuttings made throughout the 
mature stand, thus leading to the production of a new 
stand approximately even aged. These successive cut- 
tings encourage seed production, create conditions 
favorable to the growth of seedlings, and gradually 
remove the remaining trees of the mature stand as the 
young growth develops. The series of cuttings which 
vary in number and duration according to the degree 
of difficulty with which reproduction is effected, is 
divided into the following four kinds: 

Preparatory cuttings fit the stand for its reproduc- 
tion by the removal of dead, dying or defective trees, 
and prepare the ground for the germination of seeds. 
A stand in which one or more preparatory cuttings 
have been made is in the preparatory stage. 

Seed cuttings encourage seed production by the 
further opening of the stand, and admit light in 
quantity favorable for the development of young 
growth. A stand in which one or more seed cuttings 
have been made is in the seeding stage. 

Removal cuttings gradually remove the mature; 
stand which would otherwise retard the development 
of the young trees. A stand in which one or more 
removal cuttings have been made is in the removal 
stage. 

Final cutting is the last of the removal cuttings, in 
which all of the old stand still remaining is cut. 

Stand Table. A tabular statement of the number of 



WORDS AND PHRASES 497 

trees of each species and diameter class upon a given 
area. 

Starting Bar. See Gee Throw. 

State Forest. A forest which is the property of a state. 

Stay Boom. A boom fastened to a main boom and at- 
tached upstream to the shore to give added strength 
to the main boom. 

Steam Hauler. A geared locomotive used to haul loaded 
logging sleds over an ice road. It is equipped with a 
spiked metal belt which runs over sprocket wheels 
replacing the driving wheels, and is guided by a sled, 
turned by a steering wheel, upon which the front end 
rests. 

Steam Jammer. See steam loader. 

Steam Loader. A machine operated by steam and used 
for loading logs upon cars. 

Steam Skidder. See skidder. 

Stem. The trunk of a tree. The stem may extend to 
the top of the tree, as in some conifers, or it may be 
lost in the ramification of the crown, as in most broad- 
leaf trees. In tree description the stem is described 
as long or short, straight or crooked, cylindrical or 
tapering, smooth or knotty. 

Stem Density. The extent to which the total number of 
trees in a given forest approaches the total number 
which the index forest of the same age and composi- 
tion contains. It is ordinarily expressed as a decimal, 
one being taken as the numerical equivalent of the 
stem density of the index forest. 

Stem Winder. A geared locomotive. 

Stillwater. That part of a stream having such slight fall 
that no current is apparent. 

Stock Logs. To deliver logs from stump to mill or rail- 
road. 

Storage Boom. A strong boom used to hold logs in 
storage at a sawmill. 

Straw Boss. A sub-foreman in a logging camp. 

Stream Jam. See Center Jam. 

Stringer Road. See Fore-and-Aft Road. 

Strip Method. That method of conservative lumbering 
in which reproduction is secured on clean-cut strips 
by self-sown seed from the adjoining forest. 

Strip-Stand Method. A modification of the stand method 
in which reproduction cuttings are not made simul- 
taneously throughout the stand, but the stand is treat- 
ed in narrow strips at such intervals that reproduc- 
tion cuttings are generally going on in three strips at 



498 TIMBER BONDS 

one time, one strip being in the removal stage, one in 
the seedling stage and one in the preparatory stage. 

Stub. That portion of the stem left standing when a 
tree is accidentally broken off. 

Stump. That portion of the stem below the cut made 
in felling a tree. 

Stump Age. The age of a tree as determined by the 
number of annual rings upon the face of the stump, 
without allowance for the period required for the 
growth of the tree to the height of the stump. 

Stumpage. The value of timber as it stands uncut in 
the forest; or, in a general sense, the standing timber 
itself. 

Stump Height. The distance from the ground to the top 
of the stump, or from the root collar when the ground 
level has been disturbed. On a slope the average dis- 
tance is taken as the stump height. 

Sun Scald. An injury to the cambium caused by sudden 
exposure of a tree to strong sunlight. 

Suppressed. Having growth more or less seriously re- 
tarded by shade. 

Surface Fire. See Forest Fire. 

Swamp. To clear the ground of underbrush, fallen 
trees and other obstructions preparatory to construct- 
ing a logging road or opening out a gutter road. 

Swamper. One who swamps. 

Swamp Hook. A large, single hook on the end of a 
chain, used in handling logs, most commonly in skid- 
ding. 

Sway Bar. 1. A strong bar or pole, two of which couple 
and hold in position the front and rear sleds of a log- 
ging sled. 2. The bar used to couple two logging 
cars. 

Swell Butted. As applied to a tree, greatly enlarged at 
the base. 

Swing. See Gun. 

Swing Dingle. A single sled with wood-shod runners 
and a tongue with lateral play, used in hauling logs 
down steep slopes on bare ground. 

Swing Team. In a logging team of six, the pair be- 
tween the leaders and the butt team. 

Tail Chain. A heavy chain bound around the trailing 
end of logs, as a brake, in slooping on steep slopes. 

Taildown. To roll logs on a skidway to a point on the 
skids where they can be quickly reached by the load- 
ing crew. 

Tail Hold. 1. A means of obtaining increased power in 
moving a log by tackle. The cable is passed through 



WORDS AND PHRASES 499 

a block attached to the log and the end fastened to a 
stationary object, so that hauling on the other end 
gives twice the power which would be attained by 
direct attachment of the cable to the log. 2. The 
attachment of the rear end of a donkey sled, usually 
to a tree or stump. 

Tail Hook. See Dog. 

Tally Board. A thin, smooth board used by a scaler to 
record the number or volume of logs. 

Tally Man. One who records or tallies the measure- 
ments of logs as they are called by the scaler. 

Tank. See Sprinkler. 

Tank Conductor. One who has charge of the crew which 
operates a sprinkler or tank, and who regulates the 
flow of water, in icing logging roads. 

Tank Heater. A sheet iron cylinder extending through 
a tank or sprinkler in which a fire is kept to prevent 
the water in the tank from freezing while icing log- 
ging roads in extremely cold weather. 

Tanking. The act of hauling water in a tank, to ice a 
logging road. 

Tee. A strip of iron about six inches long with a hole 
in the center, to which a short chain is attached; it 
is passed through a hole in a gate plank, turned cross- 
wise, and so used to hold the plank when tripped in 
a splash dam. 

Thicket. A stand of saplings. 

Thin. See Crown Density. 

Thinning. The removal of a portion of the trees with 
the object of improving the stand without inviting 
natural reproduction. The following kinds of thin- 
ning are distinguished: 
Cleaning; 

Improvement Thinning; 
Accretion Thinning. 

Throw. See Wedge a Tree. 

Throw Line. See Trip Line. 

Throw Out. See Prog. 

Tide. A freshet. In the Appalachian region logs are 
rolled into a stream and a "tide" awaited to carry 
them to the boom. 

Timberland. See Forest. 

Timber Tract. See Forest 

Timber Wheels. See Logging Wheels. 

Toe Ring. The heavy ring or ferrule on the end of a 
cant hook. It has a lip on the lower edge to prevent 
slipping when a log is grasped. 

Toggle Chain. A short chain with a ring at one end and 



500 TIMBER BONDS 

a toggle hook and ring at the other, fastened to the 
sway bar or bunk of a logging sled, and used to regu- 
late the length of a binding chain. 

Toggle Hook. A grab hook with a long shank, used on 
a toggle chain. 

Tolerance. The capacity of a tree to endure shade. 

Tolerant. Capable of enduring more or less heavy shade. 

Tonging. Handling logs with skidding tongs. 

Top Chains. Chains used to secure the upper tiers of 
a load of logs after the capacity of the regular bind- 
ing chains has been filled. 

Top Load. A load of logs piled more than one tier high, 
as distinguished from a bunk load. 

Top Loader. That member of a loading crew who stands 
on the top of a load and places logs as they are sent 
up. 

Total Increment. The total volume of wood produced 
by the growth of a tree or stand up to the time it is 
cut. 

Tote. To haul supplies to a logging camp. 

Tote Road. A road used for hauling supplies to a log- 
ging camp. 

Tote Sled. See Jumper. 

Tow Team. An extra team stationed at an incline in a 
logging road to assist the regular teams in ascending 
with loaded sleds. 

Trailers. Several logging sleds hitched behind one an- 
other and pulled by four to eight horses driven by one 
man, thus saving teamster's wages. 

Tramway. A light or temporary railroad for the trans- 
portation of logs, often with wooden rails and oper- 
ated by horsepower. 

Trap Tree. A tree deadened or felled at a time when 
destructive bark beetles will be attracted to it and 
enter the bark. After they have entered, the bark is 
peeled and exposed to the sun, burned or buried, as 
the case may require, to destroy the insects. 

Travois. See Dray. 

Travois Road. See Skid Road. 

Tree Analysis. A series of measurements and observa- 
tions upon a felled tree to determine its growth and 
life history. Tree analyses vary with their purpose, 
and may include all or a part of the following, or may 
require additions to meet special needs: The usual 
measurements comprise the length of each section, 
the diameter inside and outside the bark, the total age, 
the age and width of the sapwood, the diameter 
growth at given periods on the upper end of each sec- 



WORDS AND PHRASES 501 

tion, the diameter breasthigh, the total height, and 
the clear, used and merchantable lengths. The ob- 
servations determine the class, form and condition of 
the tree. Although a tree analysis may include many 
combinations of the above measurements, two im- 
portant classes are distinguished: A Stump analysis 
includes measurements of the diameter growth at 
given periods upon the stump only, no matter what 
other measurements it may comprise. A Section 
analysis includes measurements of the diameter 
growth at given periods upon more than one section. 
When, in a stump or section analysis, the measure- 
ment of the diameter growth at given periods covers 
only a portion of the total diameter growth, the 
analysis is a partial stump analysis or a partial sec- 
tion analysis. 

Tree Class. All trees of approximately the same size. 
The following tree classes are distinguished: Seed- 
ling, shoot, small sapling, large sapling, small pole, 
large pole, standard, veteran. 

Tree Scribe. See Scratcher. 

Trip. See Wedge a Tree. 

Trip a Dam. To remove the plank which closes a splash 
dam. 

Trip Line. A light rope attached to a dog hook, used to 
free the latter when employed in breaking a jam, a 
skidway, or a load. See haul back. 

Tripsin. A timber placed across the bottom of a sluice- 
way in a splash dam, against which rest the planks by 
which the dam is closed. 

Trough Roof. The roof on a logging camp or barn, 
made of small logs split lengthwise, hollowed into 
troughs and laid from ridge pole to eaves. The joints 
of the lower tier are covered by inverted troughs. 

Trunk. See Stem. 

Turkey. A bag containing a lumberjack's outfit. To 
"histe the turkey" is to take one's personal belong- 
ings and leave camp. 

Turn. 1. A single trip and return made by one team 
in hauling logs. A four-turn road is a road the length 
of which will permit of only four round trips per day. 
2. Two or more logs coupled together end to end for 
hauling. 

Turnout. A short side road from a logging-sled road, 
to allow loaded sleds to pass. 

Twin Sleds. See Logging Sled. 

Twister. See Spanish windlass. 

Twitch. See Skid. 



502 TIMBER BONDS 

Two-Storied Forest. Comprising on the same area two 
classes, which vary considerably in height, composed 
of trees of different species. The term is not applicable 
to forest under reproduction, in which the appearance 
of two stories is the temporary result of an incom- 
plete process, but to those forests of which the two 
stories of growth are a natural and permanent fea- 
ture. In a two-storied forest the taller trees form the 
over-wood, or upper story. The shorter trees form 
the under-wood, or lower story. 

Underbrush. All large, woody plants, such as witch- 
hobble, laurel, striped maple and devil's club, which 
grow in a forest, but do not make trees. 

Undercut. The notch cut in a tree to determine the di- 
rection in which the tree is to fall, and to prevent 
splitting. 

Undercutter. A skilled woodman who chops the under- 
cut in trees so that they shall fall in the proper direc- 
tion. 

Undergrowth. The ground cover, underbrush, and young 
trees below the large sapling stage. 

Underwood. See Two-Storied Forest. 

Uneven-Aged Forest. See Irregular Forest. 

Union Drive. A drive of logs belonging to several own- 
ers, who share the expense pro rata. 

Upper Story. See Two-Storied Forest. 

Upright Roller. A flanged roller placed upright at a 
bend in a skid road to direct the cable. 

Used Length. The sum of the lengths of logs cut from 
a tree. 

Used Volume. The sum of the volumes of logs cut from 
a tree. 

Valuation Area. A forest area of known size upon which 
measurements or other detailed studies are made for 
the determination of the stand or yield. 

Valuation Survey. The measurement or other detailed 
study of the stand upon a valuation or experiment 
area. Two kinds of valuation survey are distinguished : 
1. The strip survey comprises the measurement 
of a stand, or a given portion of it, upon strips usual- 
ly one chain wide. 2. The plot survey comprises the 
measurement of the stand, or a given portion of it, 
upon isolated plots not in the form of strips. 

Valuer. See Cruiser. 

Van. The small store in a logging camp in which cloth- 
ing, tobacco and medicine are kept to supply the crew. 

Veteran. A tree over two feet in diameter breasthigh. 

Veteran Forest. A forest of veterans. 



WORDS AND PHRASES 503 

Virgin Forest. See First Growth. 

Volume Table. A tabular statement of the volume of 
trees in board feet or other units upon the basis of 
their diameter breasthigh, their diameter breast- 
high and height, their age, or their age and height. 

Volunteer Growth. Old field growth. Young trees 
which have sprung up in the open, as pine in old fields 
or cherry and aspen in burns. 

Wagon Sled. See Logging Sled. 

Wanigan. A houseboat used as sleeping quarters or as 
kitchen and dining room by river drivers. 

Water Ladder. Pole guides up and down which a barrel 
slides in filling a sprinkler by horsepower. 

Water Slide. See Flume. 

Wedge a Tree. To topple over with wedges a tree that 
is being felled. 

Weed Tree. A tree of a species which has little or no 
value. 

Wet Slide. See Flume. 

Whiffletree Neckyoke. A heavy logging neckyoke, to the 
end of which short whiffletrees are attached by rings. 
From the ends of the whiffletrees wide straps run to 
the breeching, thus giving the team added power in 
holding back loads on steep slopes. 

White Water Man. A log driver who is expert in break- 
ing jams on rapids or falls. 

Widow Maker. A broken limb hanging loose in the top 
of a tree, which in its fall may injure a man below. 
Or a breaking cable. 

Wigwam. Trees lodged in such a way that they support 
each other. 

Windbreak. The breaking of trees by wind. 

Windfall. A tree thrown by wind. An area on which 
the trees have been thrown by wind. 

Windfirm. Able to withstand heavy wind. 

Windshake. See Shake. 

Windslash. See Windfall. 

Wing Dam. See Pier Dam. 

Wing Jam. A jam which is formed against an obstacle 
in the stream and slants upstream until the upper end 
rests solidly against one shore, with an open channel 
for the passage of logs on the opposite side. 

Woodland. See Forest. 

Woodlot. See Forest. 

Woodpecker. A poor chopper. 

Working. The harvesting of the final yield under a 
working plan. Working is annual when cuttings are 
made each year; periodic when they are made after 



504 TIMBER BONDS 

uniform periods of two or more years; and intermit- 
tent when they are made at irregular intervals. Sus- 
tained annual, periodic, or intermittent workings are 
those under which the amount of wood cut is so regu- 
lated that the productive capacity of the forest does 
not decrease, but produces a sustained yield, which 
likewise may be annual, periodic or intermittent. 

Working Area. The total forest area managed under a 
working plan. 

Working Plan. A detailed and comprehensive scheme 
for the best permanent use of the forest. 

Working Plan Renewal. The preparation of a new work- 
ing plan for a given contract, when the present work- 
ing plan has been carried out, or changed conditions 
require its revision. 

Wrapper Chain. See Binding Chain. 

Yard. See Landing. 

Yarding Donkey. A donkey engine mounted upon a 
heavy sled, used in yarding logs by drum and cable. 

Yield. The amount of wood at present upon, or which 
after a given period will be upon, a given area. See 
Present Yield; Future Yield; Accident Yield; Inter- 
mediate Yield; Pinal Yield; Working. 



JUL 15 1912 



